Rising mortgage delinquencies mean new business for scratch and dent lender Kondaur Capital Corp. With the expectation of a recession in 2008, depreciating real estate prices should lead to rising defaults and foreclosures until 2011. This would mean more buying opportunities in this troubled sector, said Jon Daurio, chairman and chief executive officer of Kondaur.
Daurio said that, over the next four years, he expects that just under 6 million mortgage loans will default. "That is an almost incomprehensible amount," he said. "Even if it is a very small percentage, that is a lot of loans sold in the scratch and dent market."