Stewart Title is one of the largest title insurers in the country has a subsidiary called Stewart Lending Services which just purchased PMH Financial. PMH Financial had about $2.5 billion in REO (real estate owned…i.e. bank owned) property across the country.
I have made mention to others that REO is big business. There are a lot of people and a lot of companies making tons of money from foreclosures. It’s a very profitable business.
For example, Lennar, the nation’s largest home builder, has been active in the distressed property and loan market for a couple of years. They tend to purchased nonperforming loans and then either sell the homes for a profit or foreclose on the owner and then take over the property. 6 months ago Lennar raised $300 million for their Rialto Capital fund which purchases these distressed assets.
REO or banked owned property is expected to be a steady business for the next several years.
- Minnesota Fannie Mae REO Homes for Sale – HomePath (johnmurphyreports.com)
- Use Caution When Selling REO Properties, by Phil Querin, PMAR Legal Counsel, Querin Law, LLC Q-Law.com (oregonrealestateroundtable.com)
- A Closer Look At The Glut Of Distressed Homes In The Pipeline (businessinsider.com)