New Firm Hopes to Auction Bulk REO Portfolios.

Byline: Jennifer Harmon

Surprise, AZ-The director of operations for a new bulk REO website, which is slated for launch in February, has high hopes the new endeavor will help simplify and expedite real estate auction sales for institutional sellers and buyers.

At a time when many mortgage companies are having liquidity problems, Jose Maldonado says Global Asset Clearinghouse LLC, based here, will assist lenders with moving real estate owned assets quickly.

"This will make them more liquid and raise capital," he said. "It will give the selling of real estate to private investors. When a bank takes over a home, a property in foreclosure sits vacant and nobody is renting it. The condition, without a sale, gets worse every month. People vandalize the home. It brings property values down."

By allowing investors to buy these REO homes, market them and rent them, it stabilizes values in neighborhoods, Mr. Maldonado said. "Banks don't realize that. You would think they would get it."

The Global Asset Clearinghouse site is designed from the ground up, strictly for real estate sales by institutional sellers and buyers. All accounts are pre-screened and qualified for ability.

The types of assets that will be auctioned off include residential REO, residential nonperforming notes, commercial REO and nonperforming notes, and then a mixed pool of commercial and residential assets. Mr. Maldonado said the builder closeout is utilized for banks that have subdivisions they may have taken over from developers that have gone bankrupt or those who walked away from projects.