Odd allies? Hedge funds coming to rescue of area homeowners

Borrowers say private firms are more flexible than banks in handling delinquent loans

New York /
Mar.March 26, 2014 10:15 AM

Hedge funds have been helping some homeowners in New York and New Jersey out of a jam by acquiring delinquent mortgages. The firms intend to avoid the legal foreclosures process with homeowners who agree to settle or pay investors to leave.

Borrowers are said to be more likely to pay their mortgages under this set up. The reason? Hedge fund firms have more leeway than traditional banks to cut deals with homeowners. Chicago-based investment firm American Homeowner Preservation, for example, does not require documentation to sign off on a sale or loan workout. The firm is close to purchasing 2,700 more loans and currently owns about 1,000 mortgages. Neuberger Berman Group LLC  is another investor rapidly snatching up delinquent loans. 

“They’re a lot more flexible than a bank,” Louis Ragusa of Blackwood, N.J., who received help from American Homeowner Preservation. “They can work with you because they’re a private company and they can basically set their own rules.” [Bloomberg News]Mark Maurer


Related Articles

arrow_forward_ios
Adam America's Omri Sachs and Dvir Cohen with 2503-2509 Broadway (Google Maps; Adam America)

Adam America secures $63M in financing for Upper West Side project

Adam America secures $63M in financing for Upper West Side project
Macerich’s Queens Center Mall (Photo via Macerich)

Macerich’s Queens Center Mall emerges from special servicing

Macerich’s Queens Center Mall emerges from special servicing
Charles Kushner and 229 West 43rd Street (Getty, Google Maps)

Kushner Companies no longer delinquent on Times Square loans

Kushner Companies no longer delinquent on Times Square loans
The Burnsville Center Mall in Minnesota and CBL Properties founder Charles B Lebovitz (Photos via Facebook; CBL Properties)

Mall-pocalypse now: Minnesota mall loan sells for huge discount

Mall-pocalypse now: Minnesota mall loan sells for huge discount
161 Maiden Lane and Fortis CEO Jonathan Landau (Google Maps; Fortis)

Construction loan tied to “leaning” Seaport condo up for sale

Construction loan tied to “leaning” Seaport condo up for sale
30-77 Vernon Boulevard in Queens and Cape Advisors CEO Craig Wood (left) and 720 West End Avenue in Manhattan with Brack Capital Real Estate CEO Ariel Podrojski (right) (Images via Cape Advisors; Google Maps; LinkedIn)

The biggest loans of the slowest month: August’s real estate lending

The biggest loans of the slowest month: August’s real estate lending
Clockwise from top: Savanna's Christopher Schlank with 1375 Broadway, a rendering of 40 10th Avenue and 109 East 79th Street with Victor Sigoura (Google Maps; Getty; rendering via 40tenthave)

These were the largest Manhattan real estate loans in July

These were the largest Manhattan real estate loans in July
The Palisades Center and Pyramid Management Group CEO Steve Congel (Google Maps)

Palisades Center Mall operator avoids financial calamity (for now)

Palisades Center Mall operator avoids financial calamity (for now)
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...