- New Book by Edward I. Altman and Edith Hotchkiss titled "Corporate Financial Distress and Bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt"
- New book on investing in Pre-foreclosure properties…
- The European Central Bank looks at Mortgage indebtedness and household financial distress globally. A working paper series published in Feb 2010.
- Is the Fed taking us in the wrong direction?
- Foreclosures, REO’s, Bank Note Purchase, are these the investment opportunities for you?
Real Estate Note Auction Guide
How tough is distressed real estate investing to manage? A roadmap to success???
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Distressed real estate investing: more complicated than you think
April 14, 2010 by Owen Rouse Jr., Dolan Media Newswires
With all the talk about loan foreclosures, no refinance money available and banks firming up their real estate-owned departments, many investors are considering jumping into the distressed asset investing game.
While opportunities, no doubt, will show themselves, investing in distressed assets is more complicated than you may think. Like any investment, proper due diligence is the key to avoiding negative consequences downstream.
Value may be the hardest issue to lock down. To begin a transaction, you must have a sense of value both today (as is) and when complete or stabilized. With few actual trades happening in the marketplace, however, good data is hard to find.
Additionally, costs to complete (in the case of an unfinished residential subdivision, for example) may require professional advice to understand complexities with respect to construction. If the project is commercial, accurate rental rates, an understanding of the property’s competitive attributes in the marketplace and an in-depth knowledge of operating expenses for the property is indispensable in determining values.
Online Auctions, technology, all help solve the commercial distressed real estate market woes.
26 April 2010 |
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Can Technology Help Solve the Commercial Real Estate Crisis? April 15, 2010 Joe Tang, Founder & CEO of AuctionPoint, a leading provider of broker-friendly online commercial property auction solutions, shares his insights: "The industry's new kid on the block is a technology offering and online business model that gives brokers a means to stay ahead of their competition: commercial real estate online auctions. These platforms are taking an important step forward in breaking the logjam of unsold commercial property by better meeting pricing expectations and creating a sense of urgency and excitement that has been missing in the market. Once viewed as a measure of "last-resort" for distressed properties, auctions are becoming more prevalent and adding value to traditional sales. In 2008 alone, $15.5 billion in commercial real estate was sold via auction, and that number is likely to increase once the 2009 figures are released.
Does the Government's solution to mortgage crisis go far enough? Most don’t think it does.
26 April 2010 |
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75% Of Homeowners In Obama's Loan Modification Plan Still Owe More Than Their Homes Are Worth April 14, 2010 by Shahien Nasiripour More than three-quarters of homeowners who have had their monthly mortgage payments reduced under the Obama administration's primary foreclosure-prevention program owe more on their mortgage than their house is worth, according to a new report by government auditors. Over half of the roughly 170,000 distressed borrowers who have gone through the program are seriously underwater, meaning they have negative equity of at least 25 percent, the report shows, citing data through February. In other words, for every $1.00 their home is worth, they owe at least $1.25. The average homeowner that's received a five-year modified mortgage under the administration's plan had negative equity of about 35 percent prior to the program, according to a Wednesday report by the Congressional Oversight Panel, a federal bailout watchdog. After modification, that burden actually increased for the average homeowner, who is now underwater by more than 43 percent, according to the bailout watchdog's report. Research shows that the more under water homeowners are, the more likely they are to fall behind on payments, default, or walk away. |
Is Gov’t mortgage crisis strategy working? Many don’t think so.
26 April 2010 |
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Watchdog: Obama foreclosure plan leaves many out April, 13, 2010 by Daniel Wagber and Alan Zibel AP Business Writers WASHINGTON -- A watchdog panel overseeing the financial bailouts says the Obama administration's flagship mortgage aid program lags well behind the foreclosure crisis and leaves too many families out. The Congressional Oversight Panel says in a report released Wednesday that the administration projects only one million families will end up with lower monthly payments as a result of the program. The report says six million families are more than two months behind with their payments, and 200,000 more families receive foreclosure notices each month. A year and a half after launching the program, "Treasury is still fighting to get its foreclosure programs off the ground," Elizabeth Warren, who heads the independent panel set up by Congress, told reporters Tuesday. What is happening in the non-performing loan markets? Are banks actually selling these assets?
26 April 2010 |
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Nonperforming Loan Market Still Not Performing By Paul Bubny NEW YORK CITY-Most would-be investors in distressed debt think the market for such debt hasn’t gotten up to speed, with 76% of respondents to an Ernst & Young survey saying the market is “still developing” and another 13% opining that it hasn’t even begun. So it stands to reason that while all respondents to the E&Y survey did due diligence on nonperforming loan portfolios during 2009, fewer than 17.5% actually completed a purchase. The reason: there wasn’t enough distress to go around, writes E&Y’s Mark Grinis and Christopher Seyfarth in a report released Monday. "Up until now, most, but not all, banks have not been engaged in selling distressed loans," leaving the FDIC to take the lead, according to the report. "The question on everyone’s mind today is whether the US distressed loan market in 2010 and 2011 will be the same as ’09, characterized chiefly by buyers waiting for sellers to turn up and transact," says Grinis, leader of E&Y’s real estate distress services group, in a release. Seyfarth, a partner in the E&Y group, tells GlobeSt.com, "It takes two to tango. Investors are all dressed up and they’re ready to dance, but the lenders never showed up to the party, and the biggest reason is that the pricing didn’t work for them." |
- How Distressed Debt can be resolved and concessions reached…
- What is happening to the levels of distressed debt? Is it falling?
- What is happening to the levels of distressed debt? Is it falling? Stable? Or Rising?
- What is happening in the Mortgage Bond markets? Can they weather the end of the Fed’s purchasing these assets?
