Since the collapse of New Century Mortgage in March of 2007, there has been a domino effect of mortgage companies and financial institutions to either go out of business or restructure their business. This collapse has now forced thousands of homeowners, builders and small real estate investors across the country to go into foreclosure and lose their "cherished investments".
This "crisis" has now forced congress to propose new guidelines and regulations for the mortgage industry. Many financial speculators say that the end to the mortgage “crisis” is no where in sight. This “crisis” is having a profound effect on our economy from Washington, DC to Wall Street.
The banks and lending institutions that are “still standing” are finding themselves suddenly with an enormous surplus of foreclosed properties. They are now scrambling to unload their REO inventories. This cycle is in its infancy. Banks traditionally have not been holders of toxic real estate portfolios and this cycle is no different. They're writing off huge losses in the billions and taking huge hits to dispose of the inventory so they can maintain solvency. Case in point, Bear Stearns Co and most recently Indy Mac Bank.. Let’s face it; banks are not in the business of owning real estate.
The stock market looks vulnerable. Bonds are not a good place to be in a declining rate environment. Commodities look just as vulnerable in a slowing economic environment. Private equity and institutional investors are now searching for ways to generate excess market returns.
The government is trying to do all that they can to “relieve, regulate or even subsidize” this problem. However, they can not do it alone. In recent years, it has always been either a "Buyers market" or a "Sellers market". Today, it is an "Investors market".
Now is the opportunity for the serious real estate investor or portfolio manager to take advantage of this huge opportunity and purchase bulk REO properties. In the midst of all of the panicked sellers, a number of international hedge funds and well funded entities are aggressively snapping up U.S. assets. REO acquisition and disposition is becoming one of the hottest markets on the street and internationally. The predominance of our client base are large institutional buyers from across the globe.
ARBITRON ENTERPRISES, INC.
Bulk Facilitators
Specializing in:
REO's, MTN's, TStrips, BG's, NPN & PN's D2, JP54 & more.
AEI
Stability, Simplicity, Service
Arbitron Enterprises, Inc., is an Equal Opportunity and Equal Housing Company. All rights reserved.
Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
