Yes…it’s true…HOMEQ parent Barclays Bank sold it’s servicer to OCWEN…of which along with it goes $28 Billion in home loans and 1,100 employees.
The bad news…the 1,100 employees all received their pick slips and will be closing the 2 HOMEQ location, 1 in already hard hit Sacramento and the other in Raleigh, NC…THAT SUCKS!
Think about this: $28 Billion in “assets” purchased for $1.3 Billion…subtract the hard assets values and think of what’s left over… Maybe $1 billion??? We will see many more Short Sales Approved.
- What? Barclays sold $28Billion in “assets” for $1billion?
- That’s ludicrous!…No, that’s “Mark to Market” economics…the way banks measure there “non performing assets” or “ghost inventory”.
- So Kris…what your saying is?
- Yes…the banks real value of these non performing loans is $1Billion…
- What does this mean?
- Either Barclays Bank is in bad shape and is liquidating? (They’ll get a great Tax Write down for this year…about $26 billion which they can take over the next 4 years!)
- Or …This is a realistic value of what banks can expect to recover from there non performing assets????
Whatever the message…it’s that much more reason why Short Sales are the most effective alternative to any and all alternatives.