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

12 Months Ended

Dec. 31, 2014

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

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

11.  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,	As of December 31,
		2014	2013
Land	$	33,505	18,268
Rental properties		1,748	6,168
Residential single-family		4,385	6,447
Other		2,095	3,088
Total held-for-sale	$	41,733	33,971

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

		As of December 31,	As of December 31,
		2014	2013
Land	$	60,356	79,656
Rental properties		14,445	26,891
Other		789	789
Total held-for-investment	$	75,590	107,336

The following table presents the activity in real estate held-for-sale and held-for-investment for the years ended December 31, 2014 and 2013 (in thousands):

		For the Years Ended
		December 31, 2014		December 31, 2013
		Real Estate		Real Estate
		Held-for-Sale	Held-for-Investment	Held-for-Sale	Held-for-Investment
Beginning of period	$	33,971	107,336	45,637	37,413
Acquired through foreclosure		5,300	16,100	18,978	63,199
Transfers		28,018	(28,018)	-	-
Purchases		2,313	1,977	-	6,063
Improvements		-	2,831	-	575
Accumulated depreciation		-	(431)	-	-
Sales		(26,973)	(16,200)	(26,751)	(465)
Impairments		(896)	(8,005)	(3,893)	551
End of Period	$	41,733	75,590	33,971	107,336

The following table presents the real estate held-for-sale valuation allowance activity for the years ended December 31, 2014 and 2013 (in thousands):

		For the Years Ended
		December 31,
		2014	2013
Beginning of period	$	4,818	3,729
Impairments		896	3,893
Sales		(2,774)	(2,804)
End of period	$	2,940	4,818

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

		For the Years Ended December 31,
		2014	2013	2012
Real estate acquired in settlement of
loans and tax certificates:
Income from real estate operations	$	5,516	4,161	4,187
Real estate operating expenses		(6,296)	(5,807)	(5,896)
Impairment of real estate		(8,901)	(3,342)	(9,078)
Net gains on the sales of assets		4,677	4,155	788
Net real estate losses	$	(5,004)	(833)	(9,999)