Leasing Solution Aims to Salvage REO Value
REO Leasing Solutions (R2L) released a suite of services that help property investors lease distressed residential assets and rejuvenate value to those properties. R2L is a wholly-owned subsidiary of mortgage industry enterprise RMS, which originates, services, sub-services and securitizes mortgages. R2L’s asset retention methods allow borrowers to stay in their homes, investors to collect a return on their investment and local municipalities to have a steady tax revenue stream. “When loss mitigation efforts have failed and the numbers do not justify selling or retaining the asset, it’s time to consider leasing the property,” said C. Alan Paylor, president of REO Leasing Solutions. The business model uses a network of local brokers and property managers that can meet the many challenges of moving from a secured debt instrument to landlord tenant laws, said Marc Helm, chief operating officer of RMS. Paylor said R2L provides an investment option to investors of distressed assets, such as hedge funds, domestic and foreign investors. R2L then applies the leasing model to ongoing loss mitigation or secured debt. “It should be clear to most in the market today, that non-income producing or vacant property serves no purpose,” Paylor said. “Investors should consider a borrower-retained option or a new resident leasing the property.” Write to Jon Prior.