Tuesday, November 6, 2012

FHFA's 3rd Winner for REO Bulk Sale

Colony Capital is the big winner in the SW states it would appear. They were able to purchase 970 properties from Southern California, Arizona and Nevada. They are a private firm out of California.

Wonder what kind of moolah FHFA got for the sale? 176 million smackeroos. Value was apparently placed at 156.8 million. Hmmm, could you say there was a profit made by FHFA? Hardly. Surely, the Colony Capital people see extreme value here.

California Association of Realtors was strongly opposed to the bulk sales saying that we, here in Cali, need homes for buyers to purchase. And, they feel that it will stall the housing recovery by not having those homes available for sale through normal channels.

I'm not sure I complete agree with C.A.R. I believe we definitely need homes for sale, but I also believe by selling these in bulk we can get the REO's cleared out faster.

What's your opinion on REO bulk sales?

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