Real Estate Owned (REO) and Mortgages Payable (Tables)

9 Months Ended

Sep. 30, 2021

Real Estate [Abstract]

Summary of REO Transactions and Valuation Adjustments

REO transactions and valuation adjustments for the three and nine months ended September 30, 2021 and 2020 are summarized in the following tables ($ in thousands).

	Three months ended									Nine months ended
	REO			Valuation Allowance			REO, net			REO			Valuation Allowance			REO, net
Balance, beginning of period	$	12,044		$	(3,533	)	$	8,511		$	12,044		$	(3,239	)	$	8,805
Valuation allowance adjustment		—			—			—			—			(294	)		(294	)
Dispositions		(1,586	)		1,333			(253	)		(1,586	)		1,333			(253	)
Balance, September 30, 2021	$	10,458		$	(2,200	)	$	8,258		$	10,458		$	(2,200	)	$	8,258

	Three months ended							Nine months ended
	REO		Valuation Allowance			REO, net		REO			Valuation Allowance			REO, net
Balance, beginning of period	$	12,161	$	(3,239	)	$	8,922	$	6,491		$	(3,239	)	$	3,252
Acquisitions from foreclosure		—		—			—		5,787			—			5,787
Dispositions		—		—			—		(117	)		—			(117	)
Balance, September 30, 2020	$	12,161	$	(3,239	)	$	8,922	$	12,161		$	(3,239	)	$	8,922

Schedule of Mortgage Payable

Mortgages payable at September 30, 2021 and December 31, 2020 are summarized in the following table ($ in thousands).

Lender - summary of terms	September 30, 2021		December 31, 2020
Wells Fargo Bank - secured by a first trust deed on a single family residence located in Los Angeles County, matures November 1, 2044, monthly payment $7,754.40, and interest at 4.125% until October 31, 2024; thereafter interest at LIBOR plus 2.25%, Wells Fargo submitted a payoff statement in July 2020.	$	1,453	$	1,453
East West Bank - secured by a first trust deed on a single family residence located in Los Angeles County, matures January 14, 2035, with interest at Prime plus 1% or 4.25% at June 30, 2020. Subsequent to foreclosure, the mortgage was paid in-full in August 2021.		—		996
Total mortgages payable	$	1,453	$	2,449

Summary of REO, Net

REO, net in operations expense on the consolidated income statements is comprised of the following for the three and nine months ended September 30, 2021 and 2020 ($ in thousands).

	Three months ended						Nine months ended
	2021			2020			2021			2020
Holding costs, net of other income	$	(83	)	$	(51	)	$	(210	)	$	(91	)
Gain on sales		—			—			79			68
Valuation adjustments		—			—			(294	)		—
REO, net	$	(83	)	$	(51	)	$	(425	)	$	(23	)