BigBidders.com Sells Real Estate Backed Notes

It seems like a different approach but if it works and promises business, then why not? As institutions desperately search for a solution to effectively sell their toxic assets and maintain critical liquidity, the first-ever online auction marketplace of individual Notes, BigBidder.com, boldly enters the scene.

Developed by the LFC Group of Companies, BigBidder.com spent two years in development led by a stellar team of mortgage industry professionals who recognized that the liquidity crunch in the secondary markets offered an opportunity to provide sellers with more control over their transactions, sales velocity, and better prices.

“Since launching, sellers have enthusiastically welcomed our site,” says LFC Senior Vice President of BigBidder.com Paul Lyons. “The idea of selling to an increased pool of buyers, avoiding the usually long, tedious and costly sales process and getting better prices has them commenting, ‘This is exactly what I needed.’”

BigBidder.com, an unconventional business model for buying and selling Notes, allows individual investors and smaller investment groups access to specific information and supporting due diligence documents prior to purchase, eliminating the all-too-common “due diligence kick out.”

BigBidder.com is a powerful business tool that gives sellers complete control over their transactions by allowing them to name own terms of sale and minimum sales prices on a Note-by-Note basis, and receive valuable market feedback through the transparent bidding activity.

(Source) BusinessWire

People Still Looking to Buy New Home Despite Recession

One would think that people would no longer consider buying their first home due to the economy. But based on a study, there are still people who plan to get one at the right price that fits their budget. While half (52%) of all Americans are concerned they or someone they know will face foreclosure in the next six to 12 months, 23% of adults plan to purchase a home in the next five years, and more than half of them (53.5%) are first time homebuyers, according to a new survey commissioned by Move, Inc., the leader in online real estate and operator of Realtor.com(R), the #1 homes for sale Web site.

The Move survey also found nearly one out of five homeowners (18.9%) plan to take advantage of the administration's new program to help prevent foreclosures. While searching for answers in the past 12 months, 21% of all homeowners with a mortgage contacted a lender to restructure their loan. Half (10.6%) of those homeowners that contacted their lender experienced success while 5% still await an answer.

Unemployment is a driving factor causing many Americans to fear foreclosure, according to the survey. More than a quarter (27.1%) of adults feel they or someone they know may default on their mortgage due to recent unemployment (27.1%), future unemployment (29.3%) or because they owe more on their home than it's worth (25.6%). One out of eight (15.4%) is having a hard time making mortgage payments because they've recently increased or because they have too much debt (18.8%).

Determined to remain in their homes, nearly three-quarters (72%) of adults reduced spending in the past year in order to make monthly mortgage or rent payments, mostly by cutting discretionary spending such as vacations, entertainment and eating out (75%), personal items such as clothing, personal care and personal luxuries (72%) and energy costs such as gasoline and utilities (71.6%). Regardless of age, most Americans are cutting spending back from some aspect of their life to pay housing costs.

"It's not all doom and gloom. We found Americans are optimistic about homeownership despite concerns," said Move, Inc., CEO Steve Berkowitz. "They're doing everything they can, from reducing discretionary spending to pay their mortgages, to planning to take advantage of the administration's new program to stop foreclosures. They're also working with lenders to modify loans. Even more impactful are numbers that show interest in home ownership is strong as nearly a quarter of all adults plan to buy a home in the next five years."

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