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Published on 2011-03-29

 http://www.nationalmortgagenews.com/nmn_features/private-equity-pickier-1024069-1.html

Tuesday, March 29, 2011

Smaller, thinly capitalized investors in nonperforming mortgages could face liquidity concerns in the coming months as private equity investors begin to re-examine their commitment to the business while bolting for higher returns elsewhere.

No one is predicting a massive exodus of PE money from the sector quite yet, but industry veterans believe the business could soon bifurcate with larger NPL firms (with proven track records) holding steady, while smaller players find it harder to get backing.

“This is all about 'the trade,’” said a Midwestern-based NPL executive, requesting anonymity. The problem, he noted, isn’t the returns in the business are poor—it’s a matter of yield. “You can get an IRR (internal rate of return) of 13% on this business still, but some of these funds are saying that’s not good enough anymore—they can make 20% by trading currency.”

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Published on 2010-12-01

Q: How are Notes Investors Affected by Foreclosure in Judicial States?

A: A Florida foreclosure on average costs a note investor $3,500.00 to $7,000.00 and currently takes approximately six to twelve months to obtain a judgment and conduct a foreclosure auction.

In order to foreclose a Florida mortgage, borrower must have defaulted on the underlying repayment obligation or a specific note or mortgage provision. Generally, a foreclosure is filed due to borrower’s non-payment of a monthly payment due under the loan documents. Most mortgages require you to send borrower a default letter before foreclosing the mortgage so if you purchase a loan already in foreclosure, confirm lender’s compliance before purchasing. If you purchase a loan not yet in foreclosure, engage an attorney to send your default letter to confirm compliance with the mortgage terms.

If after expiration of the default cure deadline, borrower fails to remit the amount to bring the loan current, your attorney may proceed with filing a foreclosure complaint with the Clerk of Court in the county where the underlying real estate is located. Florida’s legislature recently modified foreclosure filing fees: $400.00 filing fee if outstanding loan balance is less than or equal to $50,000.00; $905.00 if greater than $50,000.00 but under $250,000.00; and $1,905.00 if greater than $250,000.00.

A foreclosure complaint is the document your attorney must file with the Clerk to initiate the foreclosure action. When your attorney files the complaint, the Clerk issues a summons for...      read full article

Published on 2010-06-24

 BY ELLEN YAN

At Plainview auction $985G debt sells for $35G [Newsday, Melville, N.Y.]

June 24--Want to bid on a delinquent loan? Wednesday, $35,000 did the trick.

That's what happened in a rather unusual Plainview auction. A $985,000 debt in Lawrence, and another one in Brooklyn -- not the properties themselves -- were among the usual foreclosures and bankruptcy assets on the block.

"It was a private lender who needed to clean up their books, and this was the most efficient way to do it," said auctioneer Rich Maltz of the family's Maltz Auctions in Plainview.

A few bids back and forth and contractor John Haran of Long Beach found...      read full article

Published on 2010-03-12

Homeowners take ‘cash for keys’ to escape debt

Borrower loses house, but gets fresh start without black mark on credit

ANALYSIS
By Al Yoon

NEW YORK - Jon Daurio, chief executive officer of mortgage investor Kondaur Capital Corp., recently offered a $4,000 check to Barry Culver for the deed to his Bryan, Ohio, house.

With the exchange, and a pay-off to a second-lien holder, Culver was freed of $120,000 in crushing mortgage debt on the house, said Daurio, who had bought the right to cut the deal when he purchased the mortgage months earlier. The house, after repairs, is now on the market for $47,500.

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