2008-10-07 12:39:01 -
- New Vista Asset Management (New Vista), an REO firm that launched two years ago with the strategy to market REOs as affordable housing solutions for minority and first-time buyers, reports that performance indicators show its plan is working. To date, minority buyers have purchased 66 percent of its listings and 80 percent of the sales are owner occupied.
The company is selling properties quickly with overall sales prices tracking at 95 percent of the original listing prices, which is netting New Vista high marks from its clients. The company's listings are marketed through a large national network of multicultural real estate firms that have an established presence in minority neighborhoods. New Vista's business strategy is to use owner-occupied REO home sales to stimulate first-time homebuyer purchases and stabilize minority communities that have been particularly impacted by the foreclosure crisis.
"Traditionally, selling to an owner occupant has helped stabilize home prices. Unlike investors that drive down home values by negotiating rock bottom prices, homeowners are willing to pay a fair price. Owner occupants also stabilize communities and fuel local economies with the whole purchase cycle that goes with homeownership and fixer-uppers," says Jim Park, New Vista's CEO.
In a business environment that has traditionally favored investors over homebuyers, industry experts didn't initially give much notice to New Vista's approach. But, as the foreclosure cycle has worsened and the impact to communities has been felt with higher crime rates, squatters and vandalism - the company's strategy and REOs are now being seen as a vehicle to housing recovery. Experts estimate that minorities could account for as much as 50 percent of the two million properties expected to go into foreclosure.
Under the company's business plan, New Vista is also working with nonprofit counseling agencies in an effort to educate qualified homebuyers about the benefits of buying an REO. Workshops have been well received thus far, drawing standing-room only crowds. "This is a win-win for everyone in the equation, says Gary Acosta, Chairman of New Vista. "Despite the headlines, people still have a strong interest in becoming homeowners and homeownership is well within their reach now that housing prices have dropped in once higher priced markets. REOs are a perfect solution for this group of buyers who were priced out of the market during the housing boom."
The company's clients represent some of the largest financial services firms in the country, including Fannie Mae, Freddie Mac, Countrywide and others. Recently, New Vista added Saxon Mortgage to its list of clients. Working with Saxon, New Vista will focus on increasing homeownership opportunities throughout the country by leveraging its REO inventory.
New Vista was founded by the nation's top minority housing experts: Park, who is also the President and CEO of the Asian Real Estate Association of America, and Gary Acosta, Co-founder of the National Association of Hispanic Real Estate Professionals (NAHREP).
About New Vista Asset Management
New Vista Asset Management is a San Diego-based national REO management and marketing company that provides innovative and community-based outsourcing solutions for mortgage bankers, mortgage investors and regulated financial institutions. The key driver behind the company's integrated minority homeownership strategy is to use foreclosure inventory to create affordable housing solutions for minority and first-time homebuyers and increase homeownership rates in underserved communities. For more information about the company, go to www.newvistareo.com.
Phase Two Communications
Mary Mancera, 760-634-5007
mary@phasetwocommunications.com 
