Loan Sales Unsuccessful - Now REO ?

Recently a couple of my bank clients have been attempting to sell their default loan portfolios to groups of investors.  Many of these portfolios are in the 3-8 million range.  The assets are mostly vacant, mostly former rental properties either single family, double or four-plex.  Most loans were originated 12-24 months ago. A majority were 90+ late with only about 20% or so less than 90.  All are located in Columbus Ohio or Dayton.

Sellers were hoping for offers close to 60% of loan balance.  What they received were offers going from 18% to 27%.  Maybe the offering wasn't promoted aggressively?

I don't know why I am surprised, but I am.  The offers were not accepted although I think the parties are still negotiating.  With that big of a spread I'm not sure where that will go.

Wonder what these properties are going to eventually be worth when I get them as REO?

Soon to be listed on www.gryphonreo.com, another 50 ++ properties.  Come n git em !!!

 
Posted by Rich Kruse on 11/03/2007 07:40 AM   Comments (5)   , , , ,  
Post is included in group: Ohio Active Rainers
Post is included in group: REO
Post is included in group: REO REALTORS
Post is included in group: Short Sale REALTORS®

5 Comments on Loan Sales Unsuccessful - Now REO ?

Seems to be running a similar course everywhere.

Connor MacIVOR

11/03/2007 08:00 AM by Connor & Paris MacIVOR (Paris911 - RE/MAX of Valencia - The 911 Team)

Wow, that is a bad drop.  Hopefully things will pick up in the spring in your area!

11/03/2007 09:54 AM by David & Lisa Webber, www.webberteam.com (RE/MAX Vision)

I'm really not surprised either. In my experience, the banks have always been the most difficult party to work with. They want everything their way and are incapable of compromising. Compromise is the cornerstone for negotiation. It's the only way to accomplish a successful transaction.

11/03/2007 03:31 PM by Lisa Hill (Daytona Beach REALTOR®) (Adams Cameron and Company)

Are the HUD or urban revitalizatin properties?

11/04/2007 08:43 PM by Paul Moye, Broker, ABR, GRI, e-PRO (Keller Williams Realty Franklin & Volunteer Trust Mortgage)

Not surprised thats what we paid in the early 90's thru 2000 until the wall street boys came in.  I have been getting recruited by the private equity groups again, they are talking about numbers around 40-50%.  See what happens, my first offer was for crazy money, well see if they actually buy something.

11/05/2007 10:36 PM by E Jeffrey Dolfinger (24/7 Realty)

Leave a response…

Name:
Notify me of new comments:
Comment:
What does the graphic say?
 
Real Estate Agent: Rich Kruse (Gryphon USA, Ltd.)
Rich Kruse
Columbus, OH
More about me…
Gryphon USA, Ltd.

Office Phone: (614) 885-0020 Ext.: 17
Cell Phone: (614) 885-0020
Email Me
A lighthearted yet informative look at the real estate and asset sale professions. Gryphon services clients sale and management problems with creative and sometimes extremely aggressive solutions. Primarily a servicer for sellers, Gryphon's professional do also assist investor/ developer buyers with acquisition transactions where the company sometiems participates as a principal.

Links

Tags (Tag Cloud)

Archives

RSS 2.0 Feed for this blog
ATOM 1.0 Feed for this blog

Find OH real estate agents and Columbus real estate here on ActiveRain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2007 ActiveRain Corp. All Rights Reserved