Studies show that areas of Los Angeles are still hurting from the recession. Now is a good time to rent an apartment here. But in order to find an ideal place in the right neighborhood, you've got to be prepared. That means working with the right rental service company and searching through hundreds of listings. It sounds like a lot of work, but when you know what you are looking for, you can narrow the search. This will help you. And renting now, while the recession is still on, is the best way to shift gears to offset these hard times.

The slumping market for commercial real estate -- viewed by many as the next big shoe to drop on the economy -- now threatens to drag down regional banks as they struggle to collect on loans made against shopping centers and office buildings.

Seriously overdue loans against commercial developments have shot up dramatically in recent months, as delinquencies snowball on construction loans and mortgages for office buildings, malls and apartments.

That's bad for giants like Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co. But it's even worse for smaller banks, which stepped up lending to local developers and businesses as a way to stay afloat after the national institutions grabbed big-ticket consumer businesses such as home loans, credit cards and checking accounts.

That's especially true in California, where unemployment exceeds 11% and commercial real estate is being pummeled.

"Commercial lending is our bread and butter, the lion's share of our business," said Dominic Ng, chairman of East West Bancorp, which with $12 billion in assets is the second-largest bank based in Los Angeles County.

The Pasadena bank, which has expanded over many years from its Chinese American base into Southern California's banking mainstream, set aside $226 million to cover loan losses last year, up from $12 million in 2007. The bank lost $49 million in 2008, compared with a profit of $161 million in 2007.

Land development and construction loans, the main problem so far for East West, total about 20% of the bank's loan portfolio. Now Ng says he is nervously watching delinquencies on commercial mortgages -- about 40% of East West's loans.

Uncollectable commercial mortgages quadrupled over the last three quarters of 2008, according to data reported to regulators. Uncollectable commercial construction loans increased eightfold during the same period.

russell56So there you have it, LA is a great place to live if you know how to live smart. Renting an apartment is the smartest way to overcome the recession. Find low rent and work with a rental service company. It's the best way to move.

MIchael Russell writes about a variety of subjects. This article discusses moving to LA. For more information about Los Angeles apartments, visit Apartment Finder.