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Home
Disciplines
NEXA
Land
Commerical
Residential
Underwriting
Opportunities
Our Process
Case Studies
Partners
Opportunities
Blog
Rates: Mortgage
Rates: Treasury & the Fed
Housing: New Homes
Housing: Existing Homes
Jobs & Inflation
Consumer Confidence
Commercial Real Estate
About
Background
Team
Skill Set
Investor Portal
Contact Us
Strategic Opportunity
Distressed Mortgages
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Disciplines
NEXA
Value Added By LANDCO NEXA
Land
Strategic Opportunity: Multi-Family Rentals
Commercial
Strategic Opportunity: Commercial Mortgage Backed Securities (CMBS)
Strategic Opportunity: Portfolio Formation
Residential
Strategic Opportunity: Non-Owner Occupied Mortgages
Strategic Opportunity: Distressed Mortgages
Underwriting
A. Banks
Banks are glutted with hundreds of thousands of non-performing residential loans (NPL’s), representing billions of dollars
Most NPL’s are underwater:
Their collateral value is less than their outstanding balance
Banks have already had to report a loss on their underwater NPL’s
Foreclosure does not recoup that loss, but only salvages some liquidity
Foreclosure is costly: loss of interest, litigation, bankruptcy, vacancy, management, vandalism, resale costs
LANDCO is able to acquire underwater NPL’s at an agreed upon discount
Banks can have immediate liquidity without having to foreclose
B. Borrowers
Homeowners with an underwater mortgage are disadvantaged
Home equity, their single greatest asset, is gone
Their credit is at risk and they will likely lose the home itself
LANDCO can help many of them reach a solution
Avoid foreclosure
Keep their home
Refinance their mortgage
Strengthen their credit
Reduce their payments
Rebuild equity
Note: Some borrowers will be unable to qualify for a refinanced mortgage, and their homes will be rented and/or resold
C. Objectives
Identify mortgages on qualified homes at imminent risk of foreclosure
Capture a substantial built-in discount on each mortgage
Earn a current yield, secured by deed of trust
Share in future home appreciation
Acquire mortgage assets within a 2-4 year window
D. Strategic Goals
Offer a large-scale service and benefit to banks holding thousands of underwater NPL’s
Offer an unusually safe and lucrative yield to institutional investors
Provide a valuable service to thousands of borrowers by
re
ducing
their debt burden, and help them restore equity
Whenever borrowers cannot qualify to restructure their debt, then
offer
good-quality homes to the public for rental and/or resale