According to the American Banker, about $10 Billion in these mortgages have been placed for sale during the first 3 months of 2010. And so far about 1/3 have been sold. Private investors and hedge funds are buying these toxic assets for pennies on the dollar. This helps banks clean up their balance sheets by off loading non performing assets.
Even Jon Najarian (known as Dr. J) was shown on CNBC ( CNBC's Toxic Asset) last week visiting homes on the east coast that his investor group was purchasing.
This is sure to affect how these mortgages are liquidated as new asset managers will likely be selected with new rules from the new owners of these purchased toxic assets.
Has anyone encountered this problem where a new owner of the REO properties has caused a switch to a new asset manager resulting in a loss of the REO listings because of a new owner?
Comments(0)