Years After The Bailout, Banks Defaulting On Properties They Repossess

TAMPA, Fla. - June 1, 2015 - PRLog -- In 2008, the U.S. Government approved the landmark $700 billion bailout plan to take distressed assets/debts, mainly mortgage-backed securities, off the books of banks and other financial institutions to instill confidence in the global banking system after years of bad decision making practices.

Seven years later, several banks are still making bad decisions with their stakeholder’s money by allowing homes they foreclose on – and now own – to be turned over to a title, deed auction because it has failed to pay the home’s property taxes. This is not only happening nationally, but here in Tampa Bay. As a result, EquiAlt is there to purchase the home for cash, clean up the lien, repair the home and rent it out to the benefit of the county tax base, community association and EquiAlt’s investors.

“As a real estate professional, I was there and struggling when the sub-prime mortgages hit the market and banks started failing,” says Brian Davison, president of EquiAlt. “That’s why the bailout happened to rectify the bad practices lending institutions had in place. It appears, some banks haven’t learned from the past. And to be honest, I think it may get worse with banks before it gets better.

“Luckily for Tampa Bay communities who don’t want blighted homes on their street and local governments who depend on property taxes to pay for the things a community needs (police/fire/streets), our company has learned from the past and we’re ready to contribute and grow throughout Tampa Bay and Florida.”

In just over two years at area county tax deed auctions, EquiAlt has purchased 14 homes that either a bank or HOA failed to pay taxes on.

“Banks, HOAs and other entities who foreclose on homes are just like any homeowner,” says Davison. “A tax bill can simply forgotten and not paid about because it’s not your normal business practice to manage individual properties, you lose the invoice or you simply don’t have the finances to pay for it.

“Either way, banks and HOAs have the same responsibility as a homeowner to pay the tax. When they don’t, we are there at the auction to purchase, restore and rent the homes to make it an asset with our renters, the community in which the house resides and with our company and investors.”

As the largest home buyer in the tax deed auction, EquiAlt pays cash for homes, removes the liens and converts them into livable, rentable spaces. The properties are sold "as is'' and EquiAlt does its own research as to the condition before buying. With more than 172 homes owned, EquiAlt has invested more $4.5 million to repair its homes after years of neglect by the former owner.

A hold investor, not a flipper like others, EquiAlt’s vested interest to improve the home’s long-term value creates an asset that benefits the community, home values and local tax base.

States Davison, “EquiAlt is a different type of company because we operate at a level of risk that most investors are scared of. We excel at managing risk to produce a home the community wants and a profitable asset our investors require. It’s a win-win.”

About EquiAlt LLC

EquiAlt researches, acquires and manages opportunistic and distressed real estate assets for the income and equity as whole transactions and as part of joint ventures. Management focus on acquiring in areas where demographic trends show strongest cash flow stability and equity growth prospects. Typically these properties are in some stage of development or rehab and are retained for cash flow, appreciation and diversification. For more information on EquiAlt, please visit www.equialt.com.