When investors from oil-rich Abu Dhabi purchased the Chrysler building in June, many waxed indignant. Perhaps they'll be happier about the latest "America For Sale" news: The New York Post reveals that an unidentified sovereign wealth fund is looking to buy thousands of foreclosed U.S. homes. The Post:
One sovereign fund, said to have earmarked $29 billion to purchase foreclosed residential real estate, recently hired a West Coast mortgage broker and is starting to search for bargains, The Post has learned.
The search, which is being carried out, in part, by Field Check Group mortgage consultant Mark Hanson, who was retained by the broker, Steve Iversen, is concentrating on single- and multi-family REO (real estate owned) homes, or homes that have already been taken over by the mortgagee
Neither Iversen nor Hanson would disclose the name of the client, but sources told The Post it's a sovereign fund.
Foreclosed properties are already selling at prices between 60 and 80 cents on the dollar. Added to this discount is the relative weakness of the dollar, which makes the investment even more attractive for international buyers. This is good news for the housing market, which will be bolstered by clearing some of these unwanted properties off of inventories.
See Also: Morgan Stanley: Sovereign Wealth Funs Make Markets More Risky
