The government missed this one big time‏

While the government was out trying to solve the country’s
residential foreclosure epidemic, they completely forgot
about all the commercial properties that were bought over
the last 5 years for way more than they should have been
bought for. While the government was creating programs that
only made the foreclosure situation worse by introducing
programs like HAMP and HARP, they forgot about the real 900
pound gorilla which is the commercial mortgage sector.

They are now switching their attention to commercial
mortgages and they will probably make the situation worse
just like they did with residential.

The small local banks have some major problems because these
big commercial mortgages put a huge weight on their
shoulders. Most of the portfolios are made up of commercial
mortgages and the FDIC is taking them down one by one.

I know this will come to a shock to you but this is reality.
There are five states with commercial mortgage delinquencies
over 10%.

Michigan, Arizona, Nevada, Montana and Florida

All of the other states are close to these delinquency
rates. There is no shortage of commercial foreclosure
opportunities right now and it’s much easier to get in this
game than it used to be. Commercial loans that were
originated in 2006-2007 have doubled this quarter and are
defaulting at 3.95% and 4.28%. Loans originated in 2008 are
defaulting at 7.82%. Pretty eye opening huh? That makes it
easy for you to find which properties to go after.

If you think that’s bad, check this out. These are the
delinquency rates for the different types of commercial
properties as of October 2009:

Office 2.29%
Hotel 6.81%
Retail 3.55%
Multifamily 6.00%
Industrial 3.09%

We are seeing the same signs of what the lenders did during
the 1981-82 and 1990-1991 recessions. There were more
millionaires made during those in commercial real estate
than any other time. It’s happening again...