$ASPS and $COOP - Why this is important!
Over the past 20 years I’ve worked the default side of real estate as a Broker. Between 2006 and 2014 I liquidated over 2000 bank assets. I’ve personally worked with both Altisource (owns Hubzu) and entities owned by Mr Cooper such as Nation Star and Xome.
Up until 2010-2014 range online auctions for REO played a relatively smaller part in the process and most of it was handled by broker on MLS.
I like these two tickers this late in the RE cycle for a few reasons. Although i do not feel even with foreclosure moratorium lifted we see a major crash in RE because the demographics and data do not support that thesis imo. I believe our growth continues but even with potentially millions of homes being foreclosed it balances the markets lack of supply that is driving up prices. Also, I see rates slowly increasing to pull this demand in as well.
I do think we have a major issue on our hands with evictions and lack of homes for people but I can’t do anything about the system but to find opportunities and at the end of the day, these homes will be liquidated.
I currently have a few separate clients with 10 of billions in loan portfolio under management to be liquidated and estimate of about 400-500 properties just in my market in Dallas I will be receiving once this lifts.
My point is, over the last few years nearly 65-70% of these assets are being sold via Xome and Hubzu my bet is, we see even more due to the back log restrictions and services needing to liquidate these assets as fast as possible
$COOP is close to breaking a new ATM and $ASPS is coming off a 6 year declining wedge from $171
These are buy hold opportunities imo
