I recently attended an investors conference with 900 of my closest friends/investors they had some interesting thoughts we can apply to Hawaii
There is good activity in buying notes and with special servicers. 1) Subordinated notes are seeing good activity. The new owners of these subordinate pieces will be tougher and fight harder to stay in the game as the net income of the properties begins to rise.2) We may be seeing the beginning of “workout fatigue” which translates into some of the loan servicers tiring of re-working or extending loans a 3rd and 4th time. They will begin foreclosing on more loans at this point in the cycle. 3) Some
servicers are allowing short sales of mortgages, renegotiating terms and >adding a “hope note” for some future sale or refinancing which could make the lender whole on their original loan. 4) Another activity that is gaining
momentum is purchase of notes that are performing but have a maturity default. Servicers are turning to this so that they can recover a majority of the principal of their loans and allow their people to focus on more troubled loans that need a lot of attention.