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Category Archive: ‘REOs’

REO Bulk Liquidations

From reoi.com plus thanks to tj and the bear for sending the photo – let’s find a Blazer for sale!:

Mariner Real Estate Management (MREM), a real estate investment and management firm based in Kansas, closed a deal to acquire a $760 million portfolio of residential and commercial loans and REO properties from the Federal Deposit Insurance Corp. (FDIC).

MREM is part of Mariner Holdings, a $7 billion wealth and asset management company. The portfolio includes roughly 1,100 loans and properties from 20 banks the FDIC has taken into receivership. The properties are located across 24 states.

Earlier in August, the FDIC sold a similar $1.7 billion portfolio to PMO Loan Acquisition Venture, a partnership of other investment firms. If bank failures continue, the amount of REO held by the FDIC would increase. Those banks insured by the FDIC currently hold $49.2 billion worth of REO, a 45% increase from a year ago.

In this most recent deal, MREM acquired a 40% managing member interest for roughly $52 million in a company created by the FDIC to hold all of its loans and REO assets recovered from failed banks. The FDIC will keep the other 60% interest in the company.

MREM tapped Cohen Financial, based in Chicago, to handle the asset management services for the deal. Cohen provides loan servicing and asset management services to third parties.

“We are very pleased to partner with the FDIC on this important transaction,” said Marty Bicknell, CEO of Mariner, in a press statement. “Together with Cohen Financial, we can offer the FDIC the best asset management solutions for this portfolio.”

Tim Mazzetti, a partner and executive vice president at Cohen Financial said his company has been preparing for an opportunity like this for some time.  “We have been building out our platform over the past four years to be in a position to take on such a large and diversified pool of performing, sub- and nonperforming assets in an efficient and cost effective manner,” Mazzetti said.

Posted by on Sep 7, 2010 in REOs | 4 comments

Blurry

The astute observers can pick out the suspicious deals from a mile away.  But how do they play into the decision-making on the street?  How can you capitalize on the extra knowledge?

If there was an area that had a bad comp but had more good comps and was generally free of foreclosure activity (i.e. older areas), you might want to try to leverage the shady comp to justify your lowball offer.  But beware in areas that are ripe for future foreclosures (i.e. tracts built at peak), because those short-sale and REO listings are likely to be listed at a price that considers all sales as normal:

Posted by on Jul 19, 2010 in Jim TV, REOs, Short Sales, Thinking of Buying? | 8 comments

B Average

The scorecards are out for Bank of America’s REO agents, and I got whacked again, achieving a score of 80, out of a possible 95, for the three closings between November and January.

My sales price-to-last BPO was 107%, so they deducted 5 points, and my average market time was 8 days when the goal for list date-to-accepted offer is 39 days for the state.  Ten points off for that sub-standard work.

But in spite of that performance, they keep me hanging around - perhaps they’ll need all hands on deck in the coming months?  The REO tsunami/trickle spewed another listing my way today, a condo in Oceanside worth about a buck and a half.  I expect more of the same – an overall increase REO listings coming to market, but none too special.

Posted by on Apr 21, 2010 in REOs | 18 comments

State Waives Tax on Debt Relief

Hat tip to Susie!  From the L.A. Times:

The measure, which is expected to be signed by Gov. Arnold Schwarzenegger, would waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale.

Thousands of Californians whose homes were foreclosed on or sold at a loss would get tax relief under a measure approved Thursday by the state Legislature.

The bill would waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale. It is expected to affect about 34,000 taxpayers.

Gov. Arnold Schwarzenegger said he would sign the measure, which would also provide about $60 million in tax credits to green-energy companies, when it reached his desk. Californians can already claim the tax breaks on federal returns. Lawmakers passed the measure in time for people to take advantage of it by the April 15 deadline for filing tax returns.

“The mortgage-debt tax relief provision in this bill will provide financial shelter for tens of thousands of Californians who have lost their hopes and dreams in the housing market crash, and it’s about time we gave these folks a helping hand,” said state Sen. Ron Calderon (D-Montebello).

The short-sale provision would mean about $34 million less in tax revenue for the state over three years, according to the Franchise Tax Board.

The “green” credits are a response to the federal American Recovery and Reinvestment Act, which provides grants to firms for power plants that produce renewable energy. The federal government does not tax the grant money. Under the bill approved Thursday, California would provide similar relief.

Other parts of the measure, SB 401 by Sen. Lois Wolk (D-Davis), were called tax increases by Republicans. Even though they supported the tax-relief element, several GOP members of the Senate and Assembly voted against the bill, which was opposed by the Howard Jarvis Taxpayers Assn.

The Republicans objected to a provision that would reduce deductions for charitable gifts, and to changes that would allow the state to tax more income earned by minor dependents.

The changes would also make it harder to qualify a home as a principal residence for purposes of escaping capital gains taxes when the property is sold, and some penalties and interest charges to corporations would be increased, according to Therese M. Twomey, a principal consultant for the Senate Republican Policy Office.

These changes would bring in more than $10 million in new revenue over five years, Twomey said.

“It’s an issue of fairness,” said Sen. George Runner (R-Lancaster). “You are giving money to one group of people and taking it away from another group of people.”

With the plunge in the real estate market, many Californians have found themselves owing much more on their mortgages than their homes are worth. Some have been foreclosed upon or asked their lender to approve a short sale, in which a home is sold for less than the debt, some of which is waived.

The amount waived has been considered taxable income under California law. The measure passed Thursday would eliminate that tax when a bank agrees to accept less than what is owed on a home.  The governor vetoed a similar bill last month because it included a provision, since removed, that would have increased penalties against businesses and wealthy individuals who abuse tax credits.

Posted by on Apr 9, 2010 in Bailout, REOs, Short Sales, Thinking of Buying? | 11 comments

F-Tour

The foreclosure activity around Carmel Valley, Del Mar, and Solana Beach has been sluggish, to say the least.  The numbers of SFRs on the auction lists are low, and they’re filled with loan modders and current short sellers.  With only a handful getting foreclosed each month, the overall inventory of attractively-priced quality homes is discouraging.

Here’s a brief youtube tour – the first house is scheduled for trustee sale on April 23, with an opening bid of $1,327,500, and the other one on the same street had an opening bid of $1,257,031.  The other four bank-owned homes had opening bids of $967,816 (on Winstanley), $835,000, $610,000 (on Barbara), and $1,900,000:

Posted by on Apr 4, 2010 in Buying at Trustee Sale, F-List, Jim TV, North County Coastal, REOs, Thinking of Buying? | 13 comments

Steady As She Goes

It looks like servicers are coasting into the HAFA/short-sale era, which officially begins April 5th. Here are the foreclosure stats from the last 12 weeks:

San Diego County Trustee-Sale Results, Weekly

My guess?  The HAFA package will encourage borrowers to pick a lane – either loan modification or short-sale.  But there are probably enough strategic defaulters to keep it busy down at the court house steps, but so far there have been very few quality properties at attractive opening bids.  I’m checking the list everyday, and I haven’t gone down to the ‘steps once this year!

Posted by on Mar 11, 2010 in Buying at Trustee Sale, Foreclosure Count, Foreclosures/REOs, Loan Mods, REOs, Thinking of Buying? | 9 comments

FR Report

December 15, 2009 – ForeclosureRadar.com, the only website that tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for November 2009. Despite apparent headline month-over-month declines in foreclosure activity, the real story requires looking at changes in the average daily activity. November had only 18 days on which filings could be recorded or trustee sales held because of fewer days in the month, Veterans Day and the Thanksgiving Holiday, while October had 22 recording days, and 21 trustee sale days.

After adjusting for this difference in days we find little month-over-month change in the statistics, with the exception of Notices of Trustee Sale which declined 13.4 percent, Cancellations, which rose 40.0 percent, and Sales to 3rd Parties, which rose 8.0 percent on a daily average basis.

“We’ve been waiting to see some impact from the Home Affordable Modification Program,” says Sean O’Toole, Founder and CEO of ForeclosureRadar.com. “The 40 percent increase in cancellations this month is likely just the beginning of what we expect will be a wave of cancellations under this program”.

Despite the significant drop in filings of new Notices of Trustee Sale, and an increase in the number of Cancellations, the number of foreclosures Scheduled for Sale still rose.  The simple reality is that homeowners are continuing to enter foreclosure faster than they are coming out.  This will likely continue until we see meaningful progress on loan modifications, or the often predicted “foreclosure wave” finally occurs.

 

Posted by on Dec 15, 2009 in Foreclosures/REOs, REOs, Shadow Inventory, Thinking of Buying?, Thinking of Selling? | 0 comments