Kondaur Capital Corp., Orange, Calif., is the winning bidder on a 1,000 unit nonperforming mortgage portfolio auctioned off by the Department of Housing and Urban Development (HUD).
"We won the bid about a week ago," said Kondaur CEO Jon Daurio, adding that the sale is expected to close some time next week. No purchase price was disclosed, nor were other details available at press time.
Kondaur would not say how many of the loans were FHA or VA backed.
A HUD spokesman said he had no information about the auction. The offering was not widely publicized.
Last month Kondaur revealed plans to slash its staff by 39%, saying it was having a hard time finding enough available product to purchase. But with the new acquisition, Daurio told National Mortgage News that he may be rescinding some of those layoffs.
In other distressed loan news, almost one out of every two homes sold in Orange County, Calif., during February was either a lender-owned home or a short sale, according to a new report released by the California Association of Realtors (CAR).
"Distressed homes accounted for a greater share of all existing single-family homes sold in O.C. last month compared to both January and to February 2010," CAR reported.
The Orange County area was once home to several subprime lending giants, including Ameriquest Mortgage and its wholesale affiliate Argent, New Century Financial, Encore Credit, and Option One. All of these firms are no longer in business.
For the entire state, distressed units accounted for 56% of existing single-family home sales during the month, compared to 54% in January. In February 2010 distressed sales accounted for 55% of transactions.
Lender-owned homes accounted for 33% of the homes sold statewide, and short sales accounted for 23%, CAR said.