Nearly 700 Florida foreclosures sold in bulk to private investor

Palm Beach Post ^ | 10 September 2012 | Kimberly Miller

[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.

[wtd]

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

[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.

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.

[fso301]

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!

[Jacquerie]

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.

[wtd]

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.