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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: In one sense, it is. Posted by Jim V on March 22, 2002 at 10:48 PM In Reply to: Re: In one sense, it is. posted by JD on March 22, 2002 at 6:47 PM : I've been buying foreclosures for years in Colorado, but have : seen little evidence of this on a large scale from any investment : company (Ocwen Bank comes to mind as a possible candidate, but that : is just speculation). There are individuals lik myself that will occasionally : purchase defaulted notes prior to sale. There hard money type lenders : that purchase modest to large volumes of notes (one at a time) and : foreclose on them. But I have never seen clear cut evidence that : any investment company : buys portfolios of defaulted notes with the intent of making money : via the foreclosure. Could you please name one. JD, Are we a bit skeptical? Ocwen is a good example. Bank of NY operates with the same M.O. Significant bid drops at the time of sale are a good indicator of who is buying at a discount. http://www.carltongroup.com used to have offerings on a regular basis, but I haven't followed it lately. Mail me if you'd like to discuss some of the obscure aspects of the markets, I'd hate to bore everyone else. : : : : I've never heard of firms in the foreclosure/fixup game which are analagous to CarMax, AutoUSA, Ugly Duckling in the auto auction game. Is there something about foreclosuring which limits the effective size of the business model? : : : Or is it the opposite? That there are representatives of "big" foreclose-and-repair firms at most courthouse auctions? I would guess the smaller bidders resent these types if they exist; they'd have deeper pockets and drive up the bidding. : : : It just seems logical to me that "if there's money to be made in foreclosures" that there would be established players in it, who have scaled up to a statewide, or nation-wide scale. : : The large players in the foreclosure game buy before the sale. They will buy large portfolios of non-performing loans at significant discounts. Some of those loans will be turned into performing loans, some of the properties will be purchased by third party bidders at sale, the properties that end up REO will be rehabbed and sold at retail prices. The portfolios will often be in the hundreds of millions of dollars with the security spread over many different states. That, I'd say, is the big leagues. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I've been buying foreclosures for years in Colorado, but have : : seen little evidence of this on a large scale from any investment : : company (Ocwen Bank comes to mind as a possible candidate, but that : : is just speculation). There are individuals lik myself that will occasionally : : purchase defaulted notes prior to sale. There hard money type lenders : : that purchase modest to large volumes of notes (one at a time) and : : foreclose on them. But I have never seen clear cut evidence that : : any investment company : : buys portfolios of defaulted notes with the intent of making money : : via the foreclosure. Could you please name one. : JD, : Are we a bit skeptical? : Ocwen is a good example. Bank of NY operates with the same M.O. : Significant bid drops at the time of sale are a good indicator of who is buying at a discount. http://www.carltongroup.com used to have offerings on a regular basis, but I haven't followed it lately. Mail me if you'd like to discuss some of the obscure aspects of the markets, I'd hate to bore everyone else. : : : : : : I've never heard of firms in the foreclosure/fixup game which are analagous to CarMax, AutoUSA, Ugly Duckling in the auto auction game. Is there something about foreclosuring which limits the effective size of the business model? : : : : Or is it the opposite? That there are representatives of "big" foreclose-and-repair firms at most courthouse auctions? I would guess the smaller bidders resent these types if they exist; they'd have deeper pockets and drive up the bidding. : : : : It just seems logical to me that "if there's money to be made in foreclosures" that there would be established players in it, who have scaled up to a statewide, or nation-wide scale. : : : The large players in the foreclosure game buy before the sale. They will buy large portfolios of non-performing loans at significant discounts. Some of those loans will be turned into performing loans, some of the properties will be purchased by third party bidders at sale, the properties that end up REO will be rehabbed and sold at retail prices. The portfolios will often be in the hundreds of millions of dollars with the security spread over many different states. That, I'd say, is the big leagues. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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