Posted by BrendaTx on 1/1/08 7:38am
Msg #228465

PRESCO...and what does this mean?



Just read this:
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/12-31-2007/0004728967&EDATE=

Which states:
Progressive Real Estate Solutions Corp.
"("PRESCO", intends to exploit opportunities in the distressed,
nonperforming and foreclosed residential loan markets and to originate
loans in the hard-money and commercial sectors."

I happened upon this in my never-ending research about RMs.

What does it mean to exploit opportunities in the distressed nonperforming and foreclosed residential loan markets?

Does it mean refinancing? I'm just curious as to what statements like this mean.

Reply by PAW on 1/1/08 7:58am
Msg #228466

>>> What does it mean to exploit opportunities in the distressed nonperforming and foreclosed residential loan markets?

Does it mean refinancing? I'm just curious as to what statements like this mean. <<<

Let's break it down, word (or phrase) for word:

exploit - to utilize, esp. for profit; turn to practical account:
opportunities - a situation or condition favorable for attainment of a goal:
in the distressed - (of real estate) foreclosed and offered for sale:
nonperforming - (esp. banking) noting or pertaining to a debt on which interest payments have been missed or slow:
and foreclosed - to take away the right to redeem (a mortgage or pledge):
residential - suited for or characterized by private residences:
loan - lending money at interest:
markets? - a subdivision of a population considered as buyers:

Therefore, the statement, in verbose layman's translation, would read something like:

... to make a profit by reaching a goal (selling a loan) based on the buyers (homeowners) that have loans that have foreclosed or debts in default on their private residences.

In a word, refinancing. Or, as I call it on some of the loans in that I've done recently, foreclosure salvations.

Reply by BrendaTx on 1/1/08 8:03am
Msg #228468

Thank you, Paul. I see this jargon

and wonder why they don't just say, "We are going to offer refinancing to those about to be foreclosed upon."

Reply by Dennis D Broadbooks on 1/1/08 8:08am
Msg #228469

The Word "Exploit"...

...also has negative connotations to it. One definition I just looked up online (Yahoo! Dictionary) defines exploit as:

"To make use of selfishly or unethically: i.e. a country that exploited peasant labor. See Synonym: manipulate."

I think it's a very poor choice of words on the part of the individual(s) who created this marketing statement if they wanted to leave a positive impression. Then again perhaps it's a Freudian slip of the tongue & could be be "right on".

Reply by BrendaTx on 1/1/08 8:31am
Msg #228470

Re: The Word "Exploit"...

I agree, Dennis.

It seems like it has become a buzz word of sorts. Kind of like if you can "exploit" a bad situation as a business person, you are a consummate entrepreneur who turns lemons into lemonade.

For the general reader / consumer it comes across negatively, IMHO.

Reply by EastTxNotary on 1/1/08 10:43am
Msg #228472

Maybe...hard money loans to investors that are trying to "snap up" all the foreclosures they can?