Written By Charles Sells
As the hype of all the new administration’s spending hit the markets, foreclosures slowed – for about a month. Anyone actually engaged intimately in the market knew a moratorium on Los Angeles and Orange County foreclosures would do nothing more than provide a false sense of hope that “change” was on the way. Fast forward nearly 24 months later and guess which two counties in the country have consistently seen the most permanent loan modifications under this struggling program?? If you guessed Los Angeles and Orange County, you are correct! Loan modifications in Los Angeles and Orange County represent nearly 10% of the national average. HOWEVER, foreclosures in these counties represent less than 5% of the national average. Seems that moratorium fueled one of numerous fires this administration will never be able to extinguish.
There is no silver bullet here, but there is indeed a silver lining. The flood gates of opportunity that were open to us (as investors) before this administration took charge are slowly cracking back open. The administration’s attempt to limit the free trade this county was founded on has continued to show weakness.