Delinquency and foreclosure have been both the toughest parts of the economy for the last few years and also the best part. I feel for the people who have been hurt and the economy is still figuring out how to right those wrongs. But some of the most positive gains have come directly from those hardest hit.
So far we’ve seen the serious delinquency rate drop to its lowest level since January 2009. Less than 1.9% of mortgages are considered delinquent now. This is great news. Homeowners are in better financial shape and the economy is rewarding their efforts.
Some of the best changes have come from loan modifications. The major restructuring needed has been moving along steadily and we’re still seeing the fruits of this work.
I would encourage you to make significant investments in major urban areas. Focus on single-family homes and commercial real estate. These are going to be huge this year and you won’t have to wait long to see the proof.