“As they do in bonds backed by mortgages and other assets, banks would pool the rents of thousands of tenants living in the formerly foreclosed properties and sell to investors a promised return based on the income the homes produce.”

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Boost for Foreclosure Market

Real-Estate Firm Gets Citigroup Loan to Buy Properties to Turn Into Rentals

Waypoint Real Estate Group LLC, a major investor in U.S. foreclosed homes, has secured a $65 million loan from Citigroup Inc. to help add to its portfolio of properties, according to people familiar with the matter.

Bankers and investors said the debt-financing deal is a milestone for the burgeoning business of renting out houses that were previously in foreclosure.

Waypoint, an Oakland, Calif., investment firm, is working with Citigroup on a bigger, longer-term financing deal that is expected to close in the coming weeks, the people said.

Investors have spent billions of dollars in recent months snapping up foreclosed homes, betting they will profit from the rental income the properties produce.

Rest here…

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4closureFraud.org