Despite the latest prediction by the Federal Reserve’s Ben Bernanke that we are on the cusp of a turn around in the economy, there is no good news for the American public on the foreclosure front.  The 2nd quarterly report of the Mortgage Bankers’ Association shows the most dismal results in mortgage delinquencies ever. (See http://www.mbaa.org/NewsandMedia/PressCenter/70050.htmfor the full report.)

 The MBA reports that at least 4.30 percent of residential mortgages are at least one month behind in payment.  The statistics do not include any mortgages for which foreclosure filings have already been made—and those figures add another 9.24 percent.  So, the total of mortgages late, seriously delinquent and in default is a whopping 13.54 percent, the highest since the MBA started keeping records in 1972.

 What is bad news for homeowners is good news for investors, because at least two or three more years of increasing short sale and REO inventory are going to be available.  This situation is not expected to turn around until the economic recovery is well under way and those who are out of work have been gainfully reemployed.

 Millions of Americans who have experienced nose diving credit and have had to seek rentals to replace the homes they have lost, so one of the growing investment opportunities is in the buy and hold market.  This is good for the flippers out there who are seeking landlords and rehabbers to flip REO and short sale deals to.  Many of the investors who have been on the sidelines with cash in the bank are now stepping forward to buy the good deals that the Wholesaler in the middle is finding and flipping.  It is indeed, a very good time to be in wholesale real estate!

 So, get out there, find those Real Estate Agents who specialize in short sale or REO properties and get them to help you cherry pick the deals that appeal to the landlords and investors who are flocking back to your market.