Private Fund Principal Reduction Plans in Perspective: Alternative to Strategic Default or Hating-Your-House

Tampa, FL (PRWEB) June 30, 2010

It seems the only consensus regarding the housing crisis is that recovery will be slow in coming. Home values are stagnant (still falling in many areas), foreclosure numbers are increasing, and the federal governments HAMP response is widely seen as an abject failure. These factors suggest few, if any options, for responsible homeowners to recover their lost housing investments any time soon.

It would seem the only options for those still able to pay their mortgages are to continue throwing money away into an undervalued asset, or engage in what is called strategic default, likely ruining your credit and chance for homeownership in the near future. In fact, homeowners who strategically default will be ineligible for new Fannie Mae-backed mortgages (up to seven years) and will likely face court via deficiency judgments.”

There may, however, be a third option. While the Too-Big-To-Fail banks and the Federal Government continue their painfully slow response, the private sector may offer a solution to some of these forgotten families who feel stuck between two bad choices: strategic default or hating their house.

Various private equity and hedge funds have entered the fray with clear and concise plans that can result in a win/win/win scenario. Once a large portfolio of residential mortgages from a given lender is collected, the fund negotiates the purchase of that portfolio at a discount. That discount is then passed on to the homeowner via principal reduction. The lender gets a cash infusion and avoids strategic default risks. The homeowner is rescued from negative equity, and the fund is able to profit while rebuilding the securitization market at the same time.

Given that different funds target different homeowners and private funds like their privacy, programs such as this have received minimal attention. Trinity Bay Financial, Inc., an authorized affiliate of Addvent Funding, has taken the initiative to gather as much detail as possible on the topic, and offer it to the pubic at:


Avenue 365 Lender Services Adds Shegun Onakomaiya as Vice President of Business Development for its Default Services Division.

Plymouth Meeting, PA (PRWEB) December 01, 2011

Avenue 365 Lender Services has announced Shegun Onakomaiya as its new Vice President of Business Development for its Default Services Division. Avenues Default Services Group has been growing exponentially since its inception earlier this year. Onakomaiyas role will be to expand the client base and find additional ways in which Avenue can serve its existing clients.

Onakomaiya spent 8 years at Citigroup Global Markets, Inc., most recently as a transaction manager in the acquisition and securitization desk. As such he has deep and firsthand experience from the customers perspective. He has interacted with dozens of asset managers, hedge funds, investors, and servicers, and plans to bring those contacts and solid relationships to his role at Avenue.

Our Default Services Group has grown by almost 100% every month since inception. I believe that Sheguns experience, great reputation in the default space, and extensive contacts will assist us in continuing that growth. Our team brings unparalleled customer service, true knowledge of collateral and title issues, and a commitment to partnering with our clients for smoother transactions. Shegun will take that message to the street and we believe the result will be phenomenal for us and our clients, said Ryan Peterson, President and CEO of Avenue 365.

Avenue 365 Lender Services is a customer-focused, technology-inspired national title insurance and settlement services provider with an unwavering commitment to provide every consumer, originator, and lender with an unparalleled experience with every loan closing. They conduct business in all 50 states for both Origination Services and Default Services. Their customers include national mortgage banks, lenders, retail mortgage brokers, asset managers, investment funds, REO managers, and servicers. To learn more visit


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