Aug. 12 (Bloomberg) -- Starwood Waypoint Residential Trust, an owner of U.S. single-family homes, bought two pools of delinquent loans and 146 bank-owned houses for $218.7 million.
The transaction includes 1,294 non-performing mortgages with an unpaid principal balance of $292.6 million, the Oakland, California-based company said today in a statement.
The market for bad mortgages is heating up as Wall Street firms try to profit from the housing recovery and banks seek to avoid the added costs of holding delinquent debt. For Starwood Waypoint, the loan purchases are a “great channel” for acquiring homes at a discount, said Gary Beasley, the company’s co-chief executive officer.
“These two pool acquisitions support our view that similar opportunities remain in the marketplace that meet our strict underwriting criteria for portfolio composition and pricing,” Beasley said in the statement.
The purchase was primarily funded through the company’s $500 million credit facility with Deutsche Bank AG, according to the statement.
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