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What Does The Foreclosure Moratorium Mean For Bulk REO Investors

Category: REO Packages

Recent trends in the loan sales market support lenders offering loan and/or REO assets in either large bulk or pooled sales in order to accomplish market pricing, greater efficiency and immediate cash. Moreover, the environment for lenders to move loan and REO assets is significantly improved as an 11,000 plus stock market and investor perception that things are not going to get “materially worse”, is supporting a bullish attitude by investors in acquiring bank owned loan and REO assets.

The foregoing, coupled with institutional investors that are starved for yield is promoting increased liquidity in the loan sales market which is creating immediate dividends for banks and other holders of assets who are looking to competitively bid assets in order to accomplish the highest possible price. Furthermore, the recent residential foreclosure moratorium will certainly provide an immediate boost to REO assets as the ever increasing residential inventory will temporarily be stayed as the court system and the largest residential lenders in the country sort out documentation and other legal claims by property owners who can now effectively live in their homes rent and mortgage free. In sum, there is still time left to coordinate and execute a competitive bulk and/or individual loan and/or REO sale in 2010.

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