Your Daily Digest for Real Estate Investing, 10/13/2020

Mortgage woes mount, politics and CRE, Welltower departure rattles, three REITs that could roll, and a commission lawsuit that could roil.

In Today’s News

Late-Stage Delinquencies Spike to Highest Levels Since 1999

CoreLogic (NYSE: CLGX) reported today that despite acceleration in home purchase demand, America’s serious delinquency rate continues to climb, with employment woes much to blame for 120-day delinquencies hitting a 21-year high.

Why it matters: Three months behind on a house payment is on the path to foreclosure unless something turns around, and that may not be the job market for millions of Americans this far behind or potentially on the way there.

What a Democratic Sweep Might Mean for CRE

Read this GlobeSt.com piece for their whole story, but here’s a news nugget: Historically, CRE has performed well under both Democratic and Republican administrations, with average annual returns of 10.3% and 8.1%, respectively, since 1978.

Why it

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Midtown Miami Land In Foreclosure Listed For Sale

3601 North Miami Avenue with Francisco Arocha (Credit: Google Maps)

3601 North Miami Avenue with Francisco Arocha (Credit: Google Maps)

The developer of the planned Triptych project that straddles the border between Midtown Miami and the Design District is listing the site for sale.

HES Group, which is facing foreclosure from its lender, is looking to sell or find a joint venture partner for the 1-acre property at 3601 North Miami Avenue, said Francisco Arocha, CEO and managing partner of HES.

“We’re working in good faith to find a good solution,” Arocha said. “We own the land and we control the land. Our goal is that during the next few weeks, the economy will come back during the election.”

Miguel Pinto of Apex Capital Realty

Miguel Pinto of Apex Capital Realty

Miguel Pinto of Apex Capital Realty and Daniela Lainville of Yaffe International Realty are co-listing the site.

In early September, LV Midtown LLC filed a foreclosure lawsuit against Aventura Hotel Properties LLC and QR Triptych

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Troubled developer offers four Oxford Commons properties in foreclosure sale | Business



Oxford Commons aerial

Four parcels at Oxford Commons are set for a mortgage foreclosure sale at the end of October.



Some real estate at Oxford Commons is set for a mortgage foreclosure sale at the end of the month, following the apparent dissolution of the Kentucky-based firm that owned the land. 

Property owned by WR Oxford, an arm of Lexington, Ky., company White Reach Development, will be auctioned off for cash on Oct. 30 at the Calhoun County Courthouse main entrance. 

The four parcels for sale are currently home to Five Below (a variety store), Ulta Beauty, Moe’s Southwest Grill and America’s First Federal Credit Union.

The sale does not include the land on which Publix supermarket, Panera Bread or Panda Express sit. 

“At the sale, the Property may be offered for sale and sold” as a whole, individual tracts, “or in any other manner the Mortgagee

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San Antonio shopping center owned by company tied to Nate Paul heading for foreclosure

A shopping center that was once home to dance hall Midnight Rodeo — and is owned by an affiliate of World Class Holdings, a company founded by Nate Paul — may be headed for foreclosure next month.

Paul is the Austin businessman at the center of the scandal currently engulfing Texas Attorney General Ken Paxton.

The property at 12260 Nacogdoches is set to be auctioned off Nov. 3, Bexar County property records show, although county officials have repeatedly postponed foreclosure sales due to the coronavirus pandemic.

Sonora Bank first pushed to foreclose in December and subsequently filed notices again this spring and summer, most recently last month. The bank’s promissory note is for roughly $4.7 million.

Two other San Antonio properties owned by entities connected to World Class were slated for foreclosure this summer.

Lenders sought to foreclose on warehouses at 639 Lanark on Aug. 4, a sale that was

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Invitation Homes Plans New Joint Venture. What Does This Mean for Investors?

Founded during the Great Recession, Invitation Homes (NYSE: INVH) has slowly expanded its portfolio of single-family rental homes across the United States since 2012. It now owns and operates 80,000 homes across 16 markets and is the largest operator of single-family rental homes in the country.

With some analysts forecasting we could see an uptick in foreclosures and distressed homes next year, is there an opportunity for Invitation Homes to purchase more homes and grow its portfolio? The company seems to think so. It recently announced it has formed a $375 million joint venture with Rockpoint Group to acquire single-family homes and operate them as rentals. Invitation Homes will contribute $75 million, and Rockport will put in $300 million. But that’s just the start. The joint venture eventually plans to deploy over $1 billion to buy and renovate homes in the West and South, where Invitation Homes is already strong.

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Summit County sees few foreclosures during pandemic economy

A for sale sign sits in front of a home in Frisco on Saturday, Oct. 10. Despite the economic recession, homeowners in Summit County have been able to avoid foreclosure because of a high demand for properties.
Photo by Libby Stanford / [email protected]

FRISCO — It’s no secret by now that Summit County’s real estate market has been largely unaffected, if not aided, by the novel coronavirus pandemic. 

Despite a total shutdown in March, residential properties in Summit County are selling faster than ever. A good seller’s market also means fewer foreclosures, which are indicated by public trustees — documents that indicate a property’s ownership has been transferred to the county.

There have been eight public trustee’s issued in Summit County this year, according to the August Land Title Guarantee Report

In 2019, 14 public trustees were issued. There were 18 issued in 2018. The last time the county

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World Class foreclosure sales canceled after Paxton legal opinion



a man wearing glasses and looking at the camera: Nate Paul is the founder of World Class Holdings, which has grown quickly since its creation in 2007 but more recently has been entangled in legal battles. [CONTRIBUTED PHOTO]


© Provided by Austin American-Statesman
Nate Paul is the founder of World Class Holdings, which has grown quickly since its creation in 2007 but more recently has been entangled in legal battles. [CONTRIBUTED PHOTO]

Austin real estate investor Nate Paul faced foreclosure on properties in Austin, Plano and San Antonio this summer from lenders seeking to collect a combined $20.5 million in delinquent debt.

But foreclosure sales of the properties scheduled for Aug. 4 didn’t take place after a rushed written legal opinion — ordered by Texas Attorney General Ken Paxton under unusual circumstances and dated Aug. 1 — rendered such sales more difficult to hold.

The American-Statesman first reported Thursday on Paxton’s Aug. 1 opinion and a scheduled Aug. 4 foreclosure sale of a Paul-controlled real estate entity based in Austin that subsequently was called off.

Paxton’s opinion came at a time potentially more opportune for Paul and his

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World Class foreclosure sales canceled after Paxton legal opinion – News – Austin American-Statesman

Austin real estate investor Nate Paul faced foreclosure on properties in Austin, Plano and San Antonio this summer from lenders seeking to collect a combined $20.5 million in delinquent debt.

But foreclosure sales of the properties scheduled for Aug. 4 didn’t take place after a rushed written legal opinion — ordered by Texas Attorney General Ken Paxton under unusual circumstances and dated Aug. 1 — rendered such sales more difficult to hold.

The American-Statesman first reported Thursday on Paxton’s Aug. 1 opinion and a scheduled Aug. 4 foreclosure sale of a Paul-controlled real estate entity based in Austin that subsequently was called off.

Paxton’s opinion came at a time potentially more opportune for Paul and his company, World Class Property Co., than previously known, however.

A second Paul-controlled real estate entity based in Austin was slated for an Aug. 4 foreclosure sale, according to court documents, as were an entity

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2 lawyers charged in alleged scheme to steal nearly $750K in surplus foreclosure cash

Criminal Justice

Two Florida lawyers have been charged in an alleged foreclosure fraud scheme that cost victims nearly $750,000.

Rashida Overby and Ria Sankar-Balram were arrested Oct. 5, according to a press release and stories by the South Florida Sun-Sentinel (here and here) and Law360.

The lawyers allegedly filed fraudulent court documents in which they claimed to represent elderly property owners or heirs of deceased property owners who were owed surplus funds from foreclosure sales. After judges granted the pleadings, the lawyers allegedly kept part of the money and wired the rest to two co-conspirators.

The alleged co-conspirators, Illya and Patricia Tinker, are already in jail following a conviction in a different fraud scheme that took ownership of 44 homes through forged documents. Sankar-Balram helped represent them in their

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Northeast Ohio counties face foreclosure risk, but others top the list

Remember the international coverage of Cleveland as a hotbed for eviction and foreclosure cases during the housing collapse and Great Recession? Maybe that won’t be the case in this recession.

A report on vulnerability to foreclosures prepared by Attom Data Solutions, a housing data provider based in Irvine, Calif., shows Northeast Ohio counties are trending lower than other parts of the nation so far this time around. The Midwest is faring better than the Northeast U.S., according to Attom. The data services provider said housing costs rising faster in pricier markets put them at more risk for foreclosures than flyover country.

The index takes into account unemployment linked to COVID-19, home equity, percentage of income to buy a home, prices, current foreclosure cases, housing debt and other factors. The lower a county’s ranking on the list, the greater risk the area has for foreclosures. Surprisingly, just three Northeast Ohio counties

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