Denver-based Real Estate Strategies, a brokerage firm, closed the sale of more than 1,300 mortgage notes with an average unpaid balance of $75,000, with a new solution that is designed to address lower balance mortgages.
“This classification of notes, ‘Low-Balance’ has largely gone underserved throughout the housing crisis of the past five plus years," Managing Member of Real Estate Strategies David Morgenstern said.
"Banks and hedge funds really focused heavily on distribution and disposition of higher balanced assets either through loan modification, short sale or foreclosure to REO,” he added.
The solution was created since real estate industry, large institutions and hedge funds are interested in divesting themselves of this “low-balance” product due to increased regulatory oversight.
Real Estate Strategies and KJE worked together to develop a platform solution aimed at servicing low-balance assets, and through the new solution, local investors can access low-balance mortgage loans as an investment product.
"The goal is to enable the investor to take on the heavy lifting and cost needed to cure the issues in the loan file while offering, where available, the homeowner a graceful exit from a bad situation," the company said.