The RTC and FHA have used seller financing successfully. Banks are not making loans to moderate credit, cash poor buyers seeking homes in red-lined areas. Yet, speed of re-occupancy is necessitated by the lightning-fast vandalism of vacant homes in the inner cities. Therefore, our no-red-tape seller financing is imperative
Tampa, FL (PRWEB) September 22, 2008
Peter Monroe, RTC (Resolution Trust Corporation) Oversight Board President and CEO from 1990 to 1993, and some colleagues have launched Wilherst Oxford, LLC, a venture capital company whose first goal is to spearhead a real estate rescue program (RRP) focused on creating new homeowners in U.S. inner cities. "Amid the real estate crisis that led to the current economic difficulties, there are exciting opportunities for Americans to move into millions of already existing, vacant and, therefore, affordable houses," said Monroe.
"The RTC successfully oversaw the largest liquidation of REO (real estate owned) in our nation's history," said Mr. Monroe. "This experience qualifies me to engage effectively in the REO business. Our fund will invest nationwide and across product lines from residential to income properties." Monroe has also served as the Chief Operating Officer of the Federal Housing Administration (FHA)--complementing his knowledge of affordable housing and REO strategies. RRP will also purchase and restructure defaulted mortgages to allow homeowners to remain in their homes, thus helping stem the tide of foreclosures.
"Wilherst Oxford has already achieved profits for its investors in its first few months, and will now focus on stabilizing neighborhoods by providing debt and equity capital to debt-starved real estate markets," said Mr. Monroe.
RRP will make vacant homes available to inner city residents through the use of seller financing and low down payments. "The RTC and FHA have used seller financing successfully. Banks are not making loans to moderate credit, cash poor buyers seeking homes in red-lined areas. Yet, speed of re-occupancy is necessitated by the lightning-fast vandalism of vacant homes in the inner cities. Therefore, our no-red-tape seller financing is imperative," Monroe emphasized. It also makes RRP's success completely dependent on the ability of new homeowners to make their mortgage payments. "They win--we win," said Monroe. "It's that simple."
RRP is a "sweat equity" or "self help" program. It empowers persons to select, purchase and fix up their own homes. RRP also empowers persons to vacate substandard rental housing. "Local governments should encourage entrepreneurs to buy and resell these vacant homes as affordable housing, by waiving existing tax/utility liens (which would never be paid anyway), and granting ample time for code compliance. The proceeds of lien waivers should be returned to new homeowners to help them make capital improvements. By helping to return these homes to productive use, cities will reap the benefits of future revenues, and stabilized communities. Cities must no longer be short-sighted here by placing roadblocks to the reuse of vacant and abandoned homes," he insists.
Peter Monroe is a licensed real estate broker and a successful lawyer who graduated from Williams College, Oxford University, and Harvard Law School. He has recently written on subjects such as Federal Casualty Insurance, and "carried interest" tax treatment for the venture and real estate capital industries (but not equity and hedge funds) as keys to economic growth. Peter Monroe is a member of the Florida Bar. He was the Executive Director of the Urban Land Institute (ULI) Foundation, and is a member of the ULI CRC (retail) Council.
He recently became a member of REOMAC--the leading research group in the burgeoning REO industry. He will speak on the subject of "win-win code enforcement practices" at the fall conference of REOMAC this October 16, 2008 in Hollywood, Florida.
For more information, contact: Peter Monroe (727) 643-6303