When the economy is down, you can expect delinquencies as well as problems galore. After all, when the sentiment is down, it would get reflected in various aspects of the economy. Take for example apartment buildings and its dynamics. You will see that apartment buildings are going empty by the thousands, such that a large number of apartment projects have already gone down the path of, or are proceeding fast towards bankruptcy filing. After all, so many people are unable to afford luxury apartments, given the state of the economy. This is having a hugely negative impact on the loans that are falling delinquent and the number of bankruptcy filing cases is rising by the day.
If you look at Nashville, almost 5.2% of Nashville’s $5.2 billion securitized loans are delinquent. This is indeed lower than the national average that stands as high as 6.49%, but then Nashville apartment owners and companies are really struggling, along with others across the country. Of the 15 loans that have fallen delinquent, around 7 were for apartments. This is understandable given the fact that hardly anyone has enough funds and the money to get into luxury apartments, either on rent of or on purchase.