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

12 Months Ended

Dec. 31, 2021

Real Estate [Abstract]

Summary of REO Transactions and Valuation Adjustments

REO transactions and valuation adjustments for 2021 and 2020 are summarized in the following tables ($ in thousands).

	2021
	REO			Valuation Allowance			REO, net
Balance, beginning of period	$	12,044		$	(3,239	)	$	8,805
Valuation allowance adjustment		—			(294	)		(294	)
Dispositions		(1,586	)		1,333			(253	)
Balance, December 31, 2021	$	10,458		$	(2,200	)	$	8,258

	2020
	REO			Valuation Allowance			REO, net
Balance, beginning of period	$	6,491		$	(3,239	)	$	3,252
Acquisitions from foreclosure		5,787			—			5,787
Dispositions		(234	)		—			(234	)
Balance, December 31, 2020	$	12,044		$	(3,239	)	$	8,805

Schedule of Mortgage Payable

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

Lender - summary of terms	December 31, 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 2021 and 2020 ($ in thousands).

	2021			2020
Holding costs, net of other income	$	(299	)	$	(164	)
Gain on sales		79			133
Valuation adjustments		(294	)		—
REO, net	$	(514	)	$	(31	)