Note F - Real Estate Held For Sale

6 Months Ended

Jun. 30, 2012

Real Estate Disclosure [Text Block]

NOTE F — REAL ESTATE HELD FOR SALE

At June 30, 2012 we held four properties with a total carrying value of approximately $2.0 million, which were acquired through foreclosure and recorded as investments in REO.  Our REO are accounted for at the lower of cost or fair value less costs to sell with fair value based on appraisals and knowledge of local market conditions.  We seek to sell properties acquired through foreclosure as quickly as circumstances permit taking into account current economic conditions.

During April 2012, we, VRM II and Fund III sold a property to an unrelated third party for approximately $0.5 million, of which our portion was approximately $0.1 million.  This transaction resulted in a net gain for us of approximately $2,000.  A consultation fee of approximately $17,000 was paid to our manager.