DSNews The homepage of the servicing industry
""Hard-hit markets are aching for stabilization that only occupancy can remedy,"" Marlene Minemier, director of national portfolio management for ""Cityside Management Corporation"":http://www.citysidecorp.com, told colleagues at the 2012 Five Star Conference and Expo last month.
[IMAGE]""It is my belief that the emerging REO rental model is a viable, real-world solution allowing tenancy to be an attractive preservation technique,"" Minemier said as she presented her position during a debate-style panel discussion entitled ""Disposition Destiny: Will rentals outpace traditional sales?""
Joining Minemier on stage in a lively discussion about how best to deal with distressed residential properties in today's market environment were Dr. Alex Villacorta, director of research and analytics for Clear Capital; Rick Sharga, EVP of Carrington Mortgage Holdings; and moderator John C. Berczuk, VP of servicer oversight and product development at Wells Fargo Corporate Trust.
Minemier focused on the challenges posed by languishing owner-occupant sales in concurrence with rising rental demand and how the single-family housing market is adapting to this emerging dynamic.
[COLUMN_BREAK]Minemier, speaking from her viewpoint shared by Cityside Management, took the position that rentals may outpace traditional sales as the need for practical foreclosure prevention is becoming more urgent. Minemier also discussed a silver lining to the changing housing landscape--how real estate professionals can easily learn to adapt and, ultimately, be successful in this emerging rental market environment.
Also attending the Five Star Conference from Cityside Management Corp. were Chris Dolloff, president, and Lionel Hotard, COO. Both gentlemen conveyed that they are of the same opinion as Minemier, concurring that keeping people in their homes by being creative and innovative with rental options is a good way to go.
The Five Star Conference is the largest event in the default servicing industry and provides attendees with numerous opportunities for continuing education and professional networking to help grow their businesses as vital members of the mortgage services community. Real estate management and mortgage industry professionals from around the country gather annually at the Five Star Conference in Dallas.
Cityside Management Corp. is based out of Manchester, New Hampshire, with five field offices throughout the United States that support the company in providing its single-source portfolio management services to high-volume real estate owners, including government agencies and private institutions.
Minemier and her colleagues at Cityside Management note that as sales of REO properties decline, the long-term vacancy of these properties leads to problems such as vandalism, decay, and other issues that can contribute to serious valuation decline. According to Cityside, conversion to rentals may be the best solution in many instances.
