Housing-News-Report-February-2016

H OUSING N EWS R EPORT Named the Nation’s Best Newsletter in 2015 by the National Association of Real Estate Editors

Trickle-Down Distress: How Mom-and-Pop Investors are Tackling a Long Tail of Bubble-Era Loans

By Daren Blomquist, Executive Editor

Robert Woods learned about the world of non-performing loans when he answered a phone call in 2011 from an investor who had purchased Woods’ strategically defaulted loan and was foreclosing. “We signed a deed-in-lieu (of foreclosure) and the house was gone. The place had stainless steel appliances, we left it clean,” Woods said of the Florida condo he had purchased in 2006 with buddy while in college using a stated-income loan and $2,000 down. “We were part of that. Even with a finance degree from college, (we were) truly uneducated about an adjustable rate mortgage.” That phone call put Woods on a path toward eventually buying defaulted

(non-performing) loans himself. Now he is on the other side of the phone calls to “deadbeat borrowers.”

February 2016 Volume 10 • Issue 2

“I’m a Deadbeat Borrower”

“Want to know what a deadbeat borrower looks like? You’re looking at him. I’m a deadbeat borrower, said Woods, who founded his loan-buying business, NexGen Coastal Investments, in 2012. Woods said his experience as a strategic defaulter instills him with more compassion for distressedhomeowners truly trying to save their homes, but also makes him keenly aware that some homeowners may try to take advantage of the situation through scams such as rent stripping — when the delinquent

CONTENTS

9 My Take by

Sherry Chris, President and CEO, Better Homes & Gardens Real Estate 11 News Briefs

12 Legal Briefs

Continued Next Page

13 Financial Briefs

14 State Spotlight: Texas

23 Book Review: “The Sales

Acceleration Formula,” By Mark Roberge

SOURCE: RealtyTrac

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