Lisa Simpson
Aug 9,2010
In: Foreclosures

Untangling the Real Estate Mess Following Foreclosure

Untangling the real estate mess following foreclosure.

Untangling the real estate mess following the foreclosure is no easy task – it needs skill and expertise. Norman J. Radow of Radco Development Solutions has been engaged by Lehman for more than ten years. Now he is tackling hedge fund and private equity company matters.

Most of them are full of praise for him privately but they hesitate to do so openly because it would mean admitting to the serious mistakes that Radow currently is trying to fix.

TriLyn, an investment firm of Greenwich dealing with real estate has hired Radco to supervise the management of Balsam Mountain Reserve, a residential community located in west North Carolina where TriLyn is trying exit the original developing firm. It is a private venture that offers community residents various facilities like golfing and horse riding. The problem is that of the 400 units only 280 in this rustic haven have been purchased.

The founding partner of Trilyn, Mark Antoncic said, “There are a lot of hedge funds who bought high interest notes on properties like these never thinking that they’d wind up with the keys. What are they going to do with these assets now? That’s where Norm’s business is going to grow.”

The trend seems to be pointing in that direction. The lenders are panicking seeking the doom of Corus Bankshares. The latter was a giant condo lender that was forced to be shut down by federal regulations after FDIC came to the conclusion that the assets of the bank stated to be $4 billion were actually worth below 60 cents on the $.

More trouble seems to be in the offing. Foresights Analytics is a consulting firm dealing with real estate. It estimates that 42% of its condo developing loans amounting to $25 billion became delinquent in the third quarter of 2009. Matthew Anderson of Foresight Analytics said, “Single-family homes are the largest piece of the overall problem. But the severity of the condo sector is much worse.”

Many of the previous real estate giants are now transforming themselves as specialists in work out solutions but the competitors of Radow lacks on one point – few can withstand the amount of verbal and sometimes physical abuse he has to swallow.

Considering the battered health of the housing sector it would take many years for him to generate sufficient sales for his clients so that their investments get back to previous levels. So advises his clients to be patient.

Share and Enjoy: