[quote=no_such_reality][quote=spdrun]112%? So basically they’re selling off unknown assets with likely a lot of bad apples mixed in at market or above. Hope Mr. Barrack (No-BUM-a?) got a sweetheart interest rate and an enema of Bernanke Bucks as a kiss goodnight.[/quote]
Sigh, it’s actually a sweet heart deal. Basically a NINJA loan with give back provisions.[/quote]
As it should be, NSR. Santa Monica-based REIT Colony Capital paid an average of $181,443 each for these properties. I can’t even imagine the majority of the REO’s they “acquired” in CA are worth that, much less the ones in AZ and NV. And, hopefully, the vast majority (or all) of them are SFR’s, NOT condos.
I would venture that upon closer inspection of this transaction, we would find that the vast majority of CA properties in this deal were located in highly-distressed ~newer tracts in . . . where else but “Armpit, CA.”
There had to have been some “provision(s)” in there to “sweeten the pot” to cause Colony to bid an avg of $181K+ each on these properties.
[quote=no_such_reality]No it should not be BG. You, the taxpayer, are being ripped off. You the taxpayer is assuming all the risk.
Colony get’s the reward, if it goes bad, you get the bill.
Sound familiar? Make sense now why the companies are bidding over market right.[/quote]
I Fannie had eventually sold them all for an avg of, say, $110K per unit (appraised value), who do you think would have been left holding the bag for the excess deficiency on them (debt overhang)?
In other words, do we want the whole bill now or perhaps part of it later??
