Distressed Asset Recovery Services
U.S. Government Seeks Range of Ideas Regarding Disposition of Real Estate Owned Properties
The Federal Housing Finance Agency ( FHFA ), in consultation with the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development ( HUD ), has issued a Request for Information (RFI) to solicit ideas for sales, joint ventures, or other strategies to augment and enhance the Real Estate-Owned (REO) asset disposition programs of Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The RFI is part of an effort designed to explore alternatives that will facilitate the current and future disposition of REO, improve loss recoveries compared to individual retail REO sales, help stabilize neighborhoods and local home values, and improve the supply of rental housing where feasible and appropriate.. Read More.
Distressed Asset Joint Ventures: A Winning Trifecta?
CB&H’s Anita Pittman takes a look at the abundance of distressed real estate assets currently on balance sheets and asks a simple question : “Why then, when there is sufficient supply and adequate demand, have bankers, developers, and investors not partnered to profit from anticipated longer-term economic recovery of real estate markets?” Regardless of their relative strength or weakness, banks have focused primarily on managing risk and maintaining or increasing capital. Many have invested significantly in the enhancement of their internal processes and procedures to minimize risk and satisfy regulators. Attempts to raise additional capital remain time-consuming and challenging, particularly for smaller community banks. Significant resources have been allocated. Read More.
CB&H Launches Distressed Asset Recovery Services
The present volume of other real estate owned (OREO) and non-performing assets (NPA) presents an extraordinary challenge to lenders – and traditional solutions do not always apply. Foreclosure actions and online marketplaces often result in inadequate auction bids. Banks with OREO and NPA are often asking more than buyers are willing to pay. However, they often need to maintain their asking price in order to avoid realizing additional REO and loan losses and negatively affecting their overall capital. Attempts to sell the property can often result in additional costs to the bank from removing liens and other expenses. Real estate. Read More.