HomeVestors to Launch REO Program July 1

HomeVestors^® of America, Inc., the company famous for its "We Buy Ugly Houses" billboards, is introducing the HomeVestors Real Estate-Owned (REO) Program on July 1 to buy "ugly notes" from banks and financial institutions nationwide.

With advertisements debuting in The Wall Street Journal, USA Today, and financial trade publications, HomeVestors plans to buy performing notes, non-performing notes, and REOs on single-family homes that will expand the company's inventory to HomeVestors' franchisees.

"We are giving an outlet to the investment community to sell us a product that no longer fits their portfolio," said Mike Stoner, Vice President of Finance for HomeVestors. "We will hold performing loans for our portfolio, as well as loans that can be reworked. Then we will distribute REO properties to our franchisees."

Banks and holders of owner-financed notes often assume homes as collateral when the homeowners fall behind on their payments or the original terms of the note are not met for a variety of reasons. Often the last stop before foreclosure, these homes come with the added expenses and responsibilities of legal fees, closing costs of future sales, and rehab costs as homes sit idle.

"These notes are perfect inventory for our Franchise network," said Ken D' Angelo, founder and CEO of HomeVestors, who developed the REO program along with Stoner. "We understand the collateral because we are in that business."

With more than 200 HomeVestors franchisees in the U.S. , the company may be the only national franchise equipped to buy and rehab these properties on a large scale. And while other companies may purchase these notes from banks and try to sell the properties "as is," HomeVestors will focus on upgrading most of these homes and their respective communities.

HomeVestors will initially establish relationships with small- to medium-sized lenders to buy these notes in bulk and turn the properties over to the franchise network. The company also will launch a web site at www.uglynotes.com to support the program and offer more information.

About HomeVestors of America, Inc.
Founded in 1989 and Franchising since 1996, Dallas-based HomeVestors of America, Inc., has more than 200 Franchises throughout the United States . The first Franchise Company of its kind, HomeVestors trains and supports franchisees who specialize in buying homes in need of repair. Most commonly known as the "We Buy Ugly Houses" franchise, HomeVestors strives to make a positive impact in each community.