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Nearly 700 Florida foreclosures sold in bulk to private investor
Palm Beach Post ^ | 10 September 2012 | Kimberly Miller

Posted on 10/04/2012 12:08:08 PM PDT by Lorianne

A San Diego company bought 699 Florida foreclosures Thursday in a bulk deal with the Federal Housing Finance Agency that included $12.3 million in cash.

The sale to Pacifica Companies is the first in a new program aimed at reducing the so-called shadow inventory of foreclosed homes by offering blocks of properties to private investors. The investors are expected to hold the homes as rentals for an unrevealed period of time before they can be sold.

Florida had three tranches of homes, including 376 in Southeast Florida, which had been repossessed and were owned by federal mortgage backer Fannie Mae.

In addition to the $12.3 million in cash, Fannie Mae will receive 90 percent of the proceeds from the homes until it collects $49.3 million, according to a transaction summary released Monday. After that, Fannie Mae and Pacifica Companies will split the proceeds. Pacifica will also receive 20 percent of all gross rental income as a management fee for overseeing daily operations of the rentals. The estimated transaction value for Fannie Mae is $78.1 million.

“The transaction is designed to promote home price stability, improve quality of housing stock and enhance rental inventory of markets by utilizing a rent-and-hold strategy,” according to the summary.

(Excerpt) Read more at palmbeachpost.com ...


TOPICS: Business/Economy; Government; US: Florida
KEYWORDS:

1 posted on 10/04/2012 12:08:12 PM PDT by Lorianne
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To: Lorianne

Was Pacifica Companies bailedout?


2 posted on 10/04/2012 12:14:17 PM PDT by fella ("As it was before Noah, so shall it be again,)
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To: Lorianne

I’ve been trying to buy a foreclosure and it’s like none of these banks want to sell them. Odd.


3 posted on 10/04/2012 12:16:12 PM PDT by McGruff (Support your local Republican candidates. They are our last line of defense.)
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To: McGruff
I’ve been trying to buy a foreclosure and it’s like none of these banks want to sell them. Odd.

You're not the only one. The banks don't want to let them go and face an immediate write-down. They would rather sit on it and wait until uncle sugar sprinkles some happy bucks on them and takes the bad properties away.

4 posted on 10/04/2012 12:22:23 PM PDT by Malsua
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To: Lorianne

$17,600 per piece of real estate. What Obama donor got that deal? Was there bidding, or was this just a giveaway?


5 posted on 10/04/2012 12:23:47 PM PDT by SoFloFreeper
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To: McGruff

Same here.
They are not interested in small time investors.


6 posted on 10/04/2012 12:24:00 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: fella

Here is a summary of a comment for the original article:
The Pacifica Company, is privately owned by the Ishrani’s, a Iranian family.
http://pacificacompanies.com/


7 posted on 10/04/2012 12:24:17 PM PDT by ruralvoter
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To: fella

Here is a summary of a comment for the original article:
The Pacifica Company, is privately owned by the Ishrani’s, an Iranian family.
http://pacificacompanies.com/


8 posted on 10/04/2012 12:24:34 PM PDT by ruralvoter
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To: SoFloFreeper

bulk sales of Fannie and Freddie (read taxpayer) owned residential foreclosed real estate. Same thing going on with FHFA


9 posted on 10/04/2012 12:26:16 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: ruralvoter

Figures. Great find.


10 posted on 10/04/2012 12:39:38 PM PDT by ColdOne (I miss my poochie... Tasha 2000~3/14/11 0bie don' t eatl my dog!)
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To: McGruff

graft for administration supporters.


11 posted on 10/04/2012 12:44:43 PM PDT by Chickensoup (STOP The Great O-ppression)
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To: Lorianne

Was this an arms length transaction, an open market transaction, or an inside deal??


12 posted on 10/04/2012 1:09:51 PM PDT by Uncle Chip
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To: Lorianne
The crony-capitalists dividing the loot once again.
13 posted on 10/04/2012 1:11:53 PM PDT by E. Pluribus Unum (Government is the religion of the psychopath.)
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To: Uncle Chip

I’d say inside deal since ordinary small time investors are shut out of the process.


14 posted on 10/04/2012 1:12:57 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: Lorianne
Unless my math is wrong, that's a little over $17,500 cash per property.

That's a steal.

15 posted on 10/04/2012 1:17:06 PM PDT by Uncle Chip
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To: Lorianne

That works out to $17,600 per home.


16 posted on 10/04/2012 1:18:31 PM PDT by fso301
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To: Lorianne

I agree with this comment>>>

Posted by longtimenorthwooder at 8:15 a.m. Sep. 14, 2012

It is a fast track to Section 8 housing......at least you have a better chance if they are sold individually that they will be owner-occupied or at least not Section 8 occupied. Just wait, Tequestian, Section 8 is coming to you as the federal government has made it easier for higher-valued properties to be rented out...


17 posted on 10/04/2012 1:20:11 PM PDT by dennisw (Government be yo mamma - Re-elect Barack Obama)
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To: Lorianne
Obama the anti-colonial spreading that wealth. After all, we stole it from the poorer Countries ...... according to him.
18 posted on 10/04/2012 1:25:13 PM PDT by liberalh8ter (If Barack has a memory like a steel trap, why can't he remember what the Constitution says?)
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To: dennisw

Probably true singe that is a gauranteed government (read taxpayer ) income stream. Can’t lose on a deal like that with the prices they are paying for the homes.


19 posted on 10/04/2012 1:27:23 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: Lorianne
This all sounds reminiscent of theIndyMac/OneWest play in 2009
20 posted on 10/04/2012 2:25:20 PM PDT by wtd
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To: wtd

More on the IndyMac/OneWest shenanigans in this video:
http://m.youtube.com/watch?feature=plcp&v=ssl5yb7FewA


21 posted on 10/04/2012 2:31:10 PM PDT by wtd
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To: SoFloFreeper; fso301; Uncle Chip
It's $12.3 million up-front plus the first $49.3 million realized, or $61.6 million; divided by 699 homes equals $88,126 per home.

Undoubtedly, this is a substantial quantity discount, but the buyer is out $12.3 million unless it can sell them and still doesn't get a penny until having first sold $61.6 million. Without knowing the neighborhood and the local economy, it's impossible to assess.

22 posted on 10/04/2012 2:36:07 PM PDT by Hebrews 11:6 (Do you REALLY believe that (1) God IS, and (2) God IS GOOD?)
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To: Hebrews 11:6
It's $12.3 million up-front plus the first $49.3 million realized, or $61.6 million; divided by 699 homes equals $88,126 per home.

Thanks!

23 posted on 10/04/2012 2:38:42 PM PDT by fso301
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To: ruralvoter
A bankrupt US government will eventually start selling assets, such as its huge reserves in western lands. Imagine Soros buying tracts the size of states.

History rhymes, in a tragic way; we paid much of our Revolutionary War debt via the sale of lands in the old northwest and southwest territories.

24 posted on 10/04/2012 3:25:03 PM PDT by Jacquerie (Exterminate rats.)
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To: SoFloFreeper
Ash Israni of Pacifica Co is not listed as a big Obama donor , but has several Israni members linked to Pacifica donating to the Dem party.
25 posted on 10/04/2012 6:03:18 PM PDT by wtd
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