Distressed Cycle Passes Half-Way Mark via NREIonline.com

Bargain hunters hoping to pick up deals among distressed assets may need to move quickly. More than half the distressed assets on banks’ books have been dealt with and the amount of loans falling into distressed situations has reached a cyclical low.

“At this point, it’s fair to say that we are moving into the later innings of the distressed cycle,” says Dan Fasulo, managing director at New York-based Real Capital Analytics.

Of the $394 billion of mortgages that became troubled since the 2007 market peak, 58 percent has now been resolved and $165 billion remains to be worked out, according to RCA. In addition, new instances of distress fell substantially in fourth quarter to $4 billion, which is the lowest level this cycle.

Read more...Distressed Cycle Passes Half-Way Mark via NREIonline.com