Property Transfer Executions
First Look
First Look allows financial institutions to make available to community housing providers the first option to purchase an REO property before it is listed and sold on the open market. Financial institutions participating in First Look release new REO properties to the Stabilization Trust for a 2-5 day window for local buyers to accept or decline to purchase a property.
In return for First Look access, local housing providers commit to expedited closing timeframes during the acquisition process. Localities respond with an interest indication to REO sellers in five business days from the initial viewing of newly available property. If a locality does not respond with interest in a First Look property, the REO seller continues to market the property for sale through its normal processes and channels.
REO Sellers use a “Net Present Value” calculation to determine offer pricing on REO properties shown through First Look. Adjustments to the fair market value are applied to offer prices, based on the savings realized by selling the property quickly with a cash closing through the Stabilization Trust (avoiding broker fees, one-time and fixed costs, taxes, etc.) The Stabilization Trust is working with the nation’s most prominent financial institutions, including Bank of America, Wells Fargo, JP Morgan Chase, Citibank, Saxon, GMAC, Fannie Mae, Freddie Mac, FHA, and smaller sub-servicers, to make new REO properties available to participating localities on a First Look basis.
[More on First Look]
Reverse Look
Reverse Look enables local buyers to build geographic concentrations of acquisitions within neighborhoods targeted for stabilization efforts.
The Reverse Look program is driven by proactive property identification: local buyers have the ability to identify for the Stabilization Trust the exact distressed properties in which they have an interest, creating targeted acquisition inventories -- essentially a shopping list -- of houses within target areas that are most critical to the success of local stabilization strategies.
Reverse Look is a feature within REOMatch.
Aged/Listed Inventory
The Targeted Aged Inventory Purchase Program gives local buyers the opportunity to purchase properties from the existing portfolios of REO sellers. Transactions may consist of a single listed property or bulk property transactions may be negotiated, depending on the policies of individual financial institutions. Financial institutions generally offer pricing on aged inventory that is comparable to the offer pricing extended to local buyers through the First Look program.
