Delinquenct rates on California commercial loans more than doubled

The delinquency rate on California commercial loans has more than doubled on $60 billion worth of loans in the second quarter 2009, according to the California Mortgage Bankers Association in a report released recently. This report shows that the delinquency rate continues to climb each quarter. Our projection is that over the next 12-24 months we will see a substantial number of loan foreclosures which means the lenders will be selling properties they have foreclosed upon at substantial discounts. We have a number of bank/lender relationships and we are just starting to see these properties hit the market. Over the next 1 to 2 years we expect to purchase numerous highly discounted properties from commercial lenders as they move these assets off their balance sheet.