The real estate market continues to improve in most parts of the country with the Bay Area being one of the brighter markets. Stonecrest has been working to improve the positioning of our land contracts for their eventual sale next year. The increasing values across the country will help us attain a solid price for these contracts. In fact, we are currently testing the market with a pool of our seasoned, modified loans and, so far, are receiving favorable bids from investors.
Our asset managers have been working away at the large Citibank pool of mortgages that we purchased in December, which were transferred to us in February. Most of this pool had real estate values on the high-end of our typical trading range. For this reason, we have been seeking more grant deeds in lieu of foreclosure and have been experiencing great success thus far. We are creating our own population of REO’s that, after repairs, will be selling through our Realtors for cash.
We have also had success working with the various states’ “Hardest Hit Funds” (HHF) programs. We are helping borrowers fill out paperwork and mail in necessary documentation. There is a substantial amount of paperwork but, if approved, the lender (us) and the borrower both end up in a much better position. The HHF program will pay lenders up to $30k to help borrowers catch up on their loans and, under certain circumstances, will make payments to lenders while unemployed borrowers get back on their feet. We are aggressively work- ing with this program and will continue to do so.
1st Quarter 2013 Total Fund Rate of Return: 8.92%
Total Fund Annualized Return Since Inception: 29.32%
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes||$18,733,009|
|Non-performing Notes Summary|
|Cost of Notes||$4,062,808|
|Modified Notes Summary|