Real Estate Held-for-Investment and Real Estate Held-for-Sale

12 Months Ended

Dec. 31, 2013

Real Estate Held-for-Investment and Real Estate Held-for-Sale [Abstract]

Real Estate Held-for-Investment and Real Estate Held-for-Sale

8.  Real Estate Held-for-Investment and Real Estate Held-for-Sale

Substantially all of the Company’s real estate has been acquired through foreclosure.  Upon acquisition, real estate is classified as real estate held-for-sale or real estate held-for-investment.    Real estate is classified as held-for-sale when the property is available for immediate sale in its present condition, management commits to a plan to sell the property, an active program to locate a buyer has been initiated, the property is being marketed at a price that is reasonable in relation to its current fair value and it is likely that a sale will be completed within one year.  When the property does not meet the real estate held-for-sale criteria, the real estate is classified as held-for-investment.

The following table presents real estate held-for-sale grouped in the following classifications (in thousands):

		As of December 31,
		2013	2012
Land	$	18,268	17,860
Rental properties		6,168	19,077
Residential single-family		6,828	7,451
Other		2,707	1,249
Total held-for-sale	$	33,971	45,637

The following table presents real estate held-for-investment grouped in the following classifications (in thousands):

		As of December 31,
		2013	2012
Land	$	79,081	36,568
Rental properties		26,891	-
Other		789	845
Total held-for-investment	$	106,761	37,413

The following table presents the activity in real estate held-for-sale and held-for-investment for the year ended December 31, 2013 and total real estate activity for the years ended December 31, 2013 and 2012 (in thousands).

		For the Years Ended December 31,
		2013			2012
		Held-for-Sale	Held-for-Investment	Total	Total
Real estate beginning of year	$	45,637	37,413	83,050	88,063
Acquired through foreclosure		18,978	63,199	82,177	46,375
Purchases		-	6,063	6,063	-
Improvements		-	-	-	2,501
Sales		(26,751)	(465)	(27,216)	(44,176)
Impairments		(3,893)	551	(3,342)	(9,713)
Real estate end of year	$	33,971	106,761	140,732	83,050

Real estate losses included in the Company’s Statement of Operation were as following (in thousands:

		For the Years Ended December 31,
		2013	2012	2011
Real estate acquired in settlement of
loans and tax certificates:
Income from real estate operations	$	4,161	4,187	1,912
Real estate operating expenses		(5,807)	(5,896)	(3,186)
Impairment of real estate		(3,342)	(9,078)	(11,841)
Net gains on the sales of assets		4,155	788	2,126
Net real estate losses	$	(833)	(9,999)	(10,989)