Cranewoods Development LLC » Real Estate Debt Workout

Incentives to Avoid Foreclosure

lewis — Tue, 06 Apr 2010 17:09:27 +0000

The Federal Government recently announced new incentives for homeowners underwater with their current mortgage to work with their bank on a “short sale.” The new rules give timelines and parameters that offer confidence to lenders who have too often been stuck in an undefined and time consuming processes. The Obama Administration’s aim is to lessen the credit ruining aspects of a foreclosure and give homeowners and lenders a start at moving forward with the least pain.

Lenders lose about 40 percent of a property’s value on a foreclosure vs. about 19 percent on a short sale, according to industry estimates.

The program also offers $3000 in moving costs to the homeowner and some mortgage support if the owner moves into HUD approved housing. Read more about it here.

Incentives to Avoid Foreclosure is a post from: Cranewoods Development LLC

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Receivers and Receivership

Andy Howe — Wed, 03 Feb 2010 15:22:16 +0000

Here’s a good resource if your real estate development or investment runs into some trouble and you or your lender think you may need a court appointed receiver.

A court appoints a receiver only after both sides of the litigation are given an apportunity to give input upon the specific receiver and the goals of the receivership. In real estate, those goals could be as diverse as selling the property to completing construction to financial analysis and auditing.

The Court and Receiver
The litigants counsel define the skill set needed in a receiver for their particular property and identify an agreed upon receiver. But once the court accepts their choice, the receiver is an extension of the neutral court.

“Parties with an interest in the receivership should treat the receiver as an arm of the court and should not seek ex-parte communications with or special treatment by the receiver.”

What to look for in a receiver

“A receiver should be chosen on the basis of background, expertise, neutrality, availability, compensation rate and temperament, and not because of perceived alliances and relationships.”

What you need to know
If you think your situation may require a receiver, go read the clear yet short article and learn more about the process and what you may need to look for. Your familiarity will aid you and your counsel in choosing the right path and goals of the receivership in your specific situation. PDF on Court Appointed Receiver here.

Receivers and Receivership is a post from: Cranewoods Development LLC

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The Tax Loss Carry Back and what it means to Real Estate Investors and Buyers

Andy Howe — Thu, 03 Dec 2009 20:51:32 +0000

The Tax Loss Carry Back attached to the Unemployment Benefits Bill recently passed by congress and signed by the president has gotten little press but it may have great impact. First off, it will have the intended influence on stabilizing the Commercial Real Estate (CRE) market by helping potentially tens of thousands of mid level businesses – hit hard with the large drop in consumer spending over the last two years – by giving them much needed funds to stay in business and in their current leased or owned locations. Secondly, it will effect developers and builders, who fall into the previous categories, by giving them the funds necessary to survive and begin building again.

“According to National Association of Home Builders President Jerry Howard, “This injection of capital will enable a lot of our members, a significant number of small and medium sized builders that have been hanging on by their fingernails, to keep their doors open, and hopefully with this increased stimulus and demand from the tax credit, to be able to get back on their feet and get the country moving forward again.”” Source.

What does that mean for Real Estate buyers and investors? Morning Star gives a hint:

“Many builders are flush with cash and have already cleaned out their inventory of “C” and “D” locations. Most builders aren’t going to let loose of their precious “A” and “B” locations at a time when several in the industry have moved back into land acquisition mode and quality land is actually scarce in several markets. With survival not in question for the vast majority of public builders, many will opt to keep their land rather than sell it at fire-sale prices for tax purposes.”

The extremely low prices currently being seen in Real Estate won’t last long when new units are being designed to deal with with the growing pent up demand and the new demand created by the extension of the first-time home buyers credit and the added home-owners credit also recently passed by congress and signed by President Obama.

The Tax Loss Carry Back and what it means to Real Estate Investors and Buyers is a post from: Cranewoods Development LLC

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