“In the pandemic period, when consumers were flush with money, with federal government assistance, where there were payment programs and accommodations, delinquency rates got to less than 1%. I don’t understand what is typical, however I would be comfy stating that was irregular.”
Fertig sees things changing in the RTL market to reflect that boost in distressed inventory and foreclosures.
“I think if you look at some of the macro pressure that’s just been on RTL in general, post-COVID macro elements like the supply compression, you have actually seen that loosen up a little bit through 2025,” Fertig stated. “I think the distressed inventory was still somewhat reduced up till just recently. There’s finally some foreclosure stock coming online, possibly from November through now.”
Because there are fewer foreclosures on the marketplace, finding the ideal opportunities is harder. However, that’s starting to change.
“It’s much more difficult to target acquisitions than it was,” Fertig stated. “Now I believe with the supply restraints, obviously, it puts some pressure on the market overall. There are other things, relative to the COVID hangover, that have actually impacted RTL, not the least of which is simply inflation in the cost of getting tasks done.