Homeland Security Capital Corp., an Arlington, Va.-based publicly-traded company which buys homeland security-related businesses, has moved into the default/real estate owned sector with the purchase of Default Servicing LLC.
The initial purchase price is $480,700 in cash, with contingent payments to the former owners of Default Servicing of up to $2.9 million possible through 2014.
Default Servicing provides REO owners such functions as property inspection, valuation, eviction, broker assignments, closing and other residential property services.
C. Thomas McMillan, chairman and chief executive of Homeland Security Capital, said with the government controlling the housing market, buying Default Servicing "provides us with an opportunity to leverage our government contracting expertise to generate new business and revenue."
Default Servicing USA Inc., the new name of the unit, will become part of a new Homeland Security Capital subsidiary, Fiducia Real Estate Solutions Inc., which will focus on providing mortgage and settlement services to lenders.
