CHICAGO, Dec. 8, 2022
Hubzu, a leading online real estate marketplace, today announced that it now offers NPLs (non-performing loans) through an agreement with preREO, a platform which has pioneered the sale and financing of discounted non-performing mortgages from institutions to real estate investors. The arrangement provides Hubzu users with access to hundreds of non-performing mortgages offered for sale, as well as the ability to finance up to 75% of their NPL acquisitions.
Historically, institutions have typically sold their NPL to other institutions. The prospect of selling NPLs on a one-off or small pool basis to real estate investors was generally regarded as inefficient and not worthwhile. preREO solved this by having loans sold into U.S. Bank Trust as Trustee of preREO Trust and providing participation agreements to investors, who receive delegated authority and the economic benefits from the specific loan or loans which they acquire.
The structure also provides a compliant holding vehicle for investors as some states require licensing to hold or enforce mortgages, but generally exempt loans held in a trust with a national bank trustee. The trust also facilitates the financing of loans acquired on preREO
“With the economy sputtering and the real estate market softening, the volume of NPLs is forecast to explode,” said Jorge Newbery, preREO CEO. “We are excited to join forces with Hubzu and bring preREO opportunities to millions of new real estate investors. Hubzu users accustomed to buying discounted REOs will now be able to move up the supply chain to get even greater discounts buying NPLs.”
preREO is America’s leading marketplace for the sale of discounted non-performing mortgages from institutions to real estate investors. preREO also facilitates financing of up to 75% of the acquisition price of non-performing mortgages.
Hubzu are one of the largest online home auction marketplaces in the country, having sold over 210,000 properties across all 50 states since 2009. They make it easy for our customers to find the perfect property and currently have over 1.6 million users. They are accredited with Morningstar, and in 2017 received a HousingWire Tech 100 award and A+ BBB rating.
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