Industry News

The right time for bulk buyers?

Experts say some lenders reluctant to unload units

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A forest of foreclosures -- the afterglow of a financial firestorm, overbuilding and plummeting home prices -- roused a buzz within the investor community about bargains galore and bulk purchases. Some sprawling subdivisions and towering condo buildings, spawned during the fever-pitch housing boom, years later contain more vacant units than occupied ones -- some were never sold; others were sold and soon after ended up in foreclosure. While the glut of vacant units has stirred interest from buyers and buyer groups seeking to seize upon dozens of bank-owned (REO) properties, bulk sales are still more the exception than the norm in most foreclosure-saddled markets, say experts. "There's been a tremendous amount of offers but only arm's-length deals have occurred," said Peter Zalewski, a principal with Condo Vultures Really LLC, a firm that generates offers for bulk portfolios from various funds. Paul Roper, co-founder of REOLynx, a company that seeks to bring part...