Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'REDWOOD MORTGAGE INVESTORS VIII | ' |
Document Type | '10-K | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | 0 | ' |
Entity Public Float | ' | $0 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000889123 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and cash equivalents | $16,393,000 | $18,943,000 |
Secured by deeds of trust | ' | ' |
Principal balances | 51,890,000 | 60,870,000 |
Advances | 708,000 | 5,035,000 |
Accrued interest | 222,000 | 182,000 |
Unsecured | 112,000 | 8,000 |
Allowance for loan losses | -8,790,000 | -19,815,000 |
Net loans | 44,142,000 | 46,280,000 |
Receivable from affiliate | 33,000 | ' |
Real estate held for sale, net | 16,552,000 | ' |
Real estate held as investment | 162,563,000 | 181,333,000 |
Other assets, net | 5,258,000 | 1,119,000 |
Total assets | 244,941,000 | 247,675,000 |
Liabilities | ' | ' |
Mortgages payable | 48,938,000 | 47,293,000 |
Accounts payable | 980,000 | 3,062,000 |
Payable to affiliate | 495,000 | 565,000 |
Total liabilities | 50,413,000 | 50,920,000 |
Capital | ' | ' |
Limited partners’ capital, subject to redemption, net of unallocated syndication costs of $0 and $318 for 2013 and 2012, respectively; and net of formation loan receivable of $7,627 for 2013 and 2012 | 194,236,000 | 196,081,000 |
General partners’ capital (deficit), net of unallocated syndication costs of $0 and $3 for 2013 and 2012, respectively | -1,024,000 | -1,025,000 |
Total partners’ capital | 193,212,000 | 195,056,000 |
Non-controlling interest | 1,316,000 | 1,699,000 |
Total capital | 194,528,000 | 196,755,000 |
Total liabilities and capital | 244,941,000 | 247,675,000 |
General Partner [Member] | ' | ' |
Capital | ' | ' |
Total partners’ capital | 193,212,000 | 195,056,000 |
Limited Partner [Member] | ' | ' |
Capital | ' | ' |
Total partners’ capital | $194,236,000 | $196,081,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
' | $321 | |
Limitеd Partnеrs' Capital, Subjеct to Rеdеmption, Formation Loan Rеcеivablе | 7,627 | 7,627 |
General Partner [Member] | ' | ' |
0 | 3 | |
Limited Partner [Member] | ' | ' |
$0 | $318 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operation (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Interest income | ' | ' |
Loans | $1,992,000 | $1,387,000 |
Imputed interest on formation loan | 389,000 | 207,000 |
Other interest income | 1,000 | 1,000 |
Total interest income | 2,382,000 | 1,595,000 |
Mortgages | ' | ' |
Mortgage interest expense | 2,263,000 | 2,400,000 |
Bank loan, secured | ' | 560,000 |
Amortization of discount on formation loan | 389,000 | 207,000 |
Other interest expense | 15,000 | 1,000 |
Total interest expense | 2,667,000 | 3,168,000 |
Net interest income/(expense) | -285,000 | -1,573,000 |
Late fees | 9,000 | 15,000 |
Other | 851,000 | 1,000 |
Total revenues/(expense), net | 575,000 | -1,557,000 |
Provision for (recovery of) loan losses | -1,040,000 | 859,000 |
Operating Expenses | ' | ' |
Mortgage servicing fees | 589,000 | 722,000 |
Asset management fees | 765,000 | 840,000 |
Costs from Redwood Mortgage Corp. | 1,613,000 | 1,321,000 |
Professional services | 590,000 | 1,198,000 |
REO | ' | ' |
Rental operations, net | -3,187,000 | -2,903,000 |
Holding costs | 256,000 | 698,000 |
Loss/(gain) on disposal | -521,000 | -39,000 |
Impairment loss/(gain) | 1,009,000 | 1,258,000 |
Other | 68,000 | 143,000 |
Total operating expenses | 1,182,000 | 3,238,000 |
Net income (loss) | 433,000 | -5,654,000 |
Net income (loss) | ' | ' |
General partners (1%) | 4,000 | -57,000 |
Limited partners (99%) | 429,000 | -5,597,000 |
433,000 | -5,654,000 | |
Rental REO [Member] | ' | ' |
Mortgages | ' | ' |
Mortgage interest expense | 2,263,000 | 2,397,000 |
Non Rental REO [Member] | ' | ' |
Mortgages | ' | ' |
Mortgage interest expense | ' | $3,000 |
Where Income Is Reinvested [Member] | ' | ' |
Net income (loss) per $1,000 invested by limited partners for entire period | ' | ' |
Net income (loss) per $1,000 invested by limited partners for entire period (in Dollars per share) | $2 | ($24) |
Where Partner Receives Income In Monthly Distributions [Member] | ' | ' |
Net income (loss) per $1,000 invested by limited partners for entire period | ' | ' |
Net income (loss) per $1,000 invested by limited partners for entire period (in Dollars per share) | $2 | ($24) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Partners' Capital (USD $) | Partner Capital [Member] | Partner Capital [Member] | Unallocated Syndication Costs Limited Partners [Member] | Unallocated Syndication Costs Limited Partners [Member] | Formation Loan, Gross [Member] | Formation Loan, Gross [Member] | Limited Partner [Member] | General Partner [Member] | Total |
Limited Partner [Member] | General Partner [Member] | Limited Partner [Member] | General Partner [Member] | Limited Partner [Member] | General Partner [Member] | ||||
Balance at Dec. 31, 2011 | $212,431,000 | ($961,000) | ($667,000) | ($7,000) | ($7,627,000) | ($968,000) | $204,137,000 | $203,169,000 | ' |
Net income (loss) | -5,597,000 | -57,000 | ' | ' | ' | -57,000 | -5,597,000 | -5,654,000 | -5,654,000 |
Allocation of syndication costs | -349,000 | -4,000 | 349,000 | 4,000 | ' | ' | ' | ' | ' |
Partners’ withdrawals | -2,459,000 | ' | ' | ' | ' | ' | -2,459,000 | -2,459,000 | ' |
Balance at Dec. 31, 2012 | 204,026,000 | -1,022,000 | -318,000 | -3,000 | -7,627,000 | -1,025,000 | 196,081,000 | 195,056,000 | 195,056,000 |
Net income (loss) | 429,000 | 4,000 | ' | ' | ' | 4,000 | 429,000 | 433,000 | 433,000 |
Allocation of syndication costs | -315,000 | -6,000 | 318,000 | 3,000 | ' | -3,000 | 3,000 | ' | ' |
Partners’ withdrawals | -2,277,000 | ' | ' | ' | ' | ' | -2,277,000 | -2,277,000 | ' |
Balance at Dec. 31, 2013 | $201,863,000 | ($1,024,000) | ' | ' | ($7,627,000) | ($1,024,000) | $194,236,000 | $193,212,000 | $193,212,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities | ' | ' |
Net income (loss) | $433,000 | ($5,654,000) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' |
Amortization of borrowings-related origination fees | 97,000 | 302,000 |
Imputed interest on formation loan | -389,000 | -207,000 |
Amortization of discount on formation loan | 389,000 | 207,000 |
Provision for loan losses | -1,040,000 | 859,000 |
REO – depreciation | -43,000 | ' |
REO – loss/(gain) on disposal | -521,000 | -39,000 |
REO – impairment loss | 1,038,000 | 1,114,000 |
Change in operating assets and liabilities | ' | ' |
Accrued interest | -45,000 | 2,264,000 |
Advances on loans | 1,985,000 | 1,625,000 |
Allowance for loan losses | 1,227,000 | 21,000 |
Receivable from affiliate | -161,000 | ' |
Other assets | -725,000 | -741,000 |
Accounts payable | -2,097,000 | -4,607,000 |
Payable to affiliate | -70,000 | -160,000 |
Net cash provided by (used in) operating activities | 2,924,000 | -2,677,000 |
Cash flows from investing activities | ' | ' |
Loans originated | -22,285,000 | -10,522,000 |
Loans sold to affiliates | 2,107,000 | 1,189,000 |
Unsecured loan originated | -104,000 | 36,000 |
Payments for development of real estate | -4,070,000 | -3,372,000 |
Proceeds from disposition of real estate | 9,962,000 | 30,035,000 |
Net cash provided by (used in) investing activities | -4,459,000 | 34,767,000 |
Cash flows from financing activities | ' | ' |
Payments on bank loan | ' | -16,789,000 |
Mortgages taken | 5,000,000 | 5,160,000 |
Payments on mortgages | -3,355,000 | -1,548,000 |
Partners’ withdrawals | -2,277,000 | -2,459,000 |
Increase/(decrease) in non-controlling interest | -383,000 | -1,711,000 |
Net cash provided by (used in) financing activities | -1,015,000 | -17,347,000 |
Net increase (decrease) in cash and cash equivalents | -2,550,000 | 14,743,000 |
Cash and cash equivalents, January 1 | 18,943,000 | 4,200,000 |
Cash and cash equivalents, December 31 | 16,393,000 | 18,943,000 |
Supplemental disclosures of cash flow information | ' | ' |
Real estate acquired through foreclosure/settlement on loans, net of liabilities assumed | 6,979,000 | 1,524,000 |
Cash paid for interest | 2,263,000 | 2,960,000 |
Rental Operations [Member] | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' |
REO – depreciation | 2,781,000 | 2,328,000 |
Non-Rental Operations [Member] | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' |
REO – depreciation | 22,000 | 11,000 |
Unsecured Loan [Member] | ' | ' |
Cash flows from investing activities | ' | ' |
Principal collected on loans | $9,931,000 | $17,401,000 |
Note_1_Organizational_and_Gene
Note 1 - Organizational and General | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||||||||
NOTE 1 – ORGANIZATIONAL AND GENERAL | |||||||||
Redwood Mortgage Investors VIII, a California Limited Partnership, (“RMI VIII” or the “partnership”) was organized in 1993 to engage in business as a mortgage lender for the primary purpose of making loans secured by deeds of trust on California real estate. The general partners of the partnership are Redwood Mortgage Corp. (“RMC”) and its wholly-owned subsidiary, Gymno LLC (“Gymno”), a California limited liability company, and Michael R. Burwell (“Burwell”), an individual. The address of the partnership and the general partners is 1825 South Grant Street, Suite 250, San Mateo, CA 94402. The mortgage loans the company invests in are arranged and are generally serviced by RMC. Michael Burwell is the president and majority shareholder (through his holdings and beneficial interests in certain trusts) of RMC. The general partners are required to contribute to capital 1/10 of 1% of the aggregate capital contributions of the limited partners. As of December 31, 2013, the general partners had contributed capital in accordance with Section 4.1 of the partnership agreement. | |||||||||
The partnership completed its sixth offering stage in 2008. No additional offerings are contemplated at this time. Sales commissions owed to securities broker/dealers in conjunction with the offerings, are not paid directly out of the offering proceeds by the partnership. These commissions are paid by RMC as consideration for the exclusive right to originate loans for RMI VIII. To fund the payment of these commissions, during the offering periods, the partnership lent amounts to RMC to pay all sales commissions and amounts payable in connection with unsolicited orders to invest (formation loan). | |||||||||
The rights, duties and powers of the general and limited partners of the partnership are governed by the limited partnership agreement and Sections 15900 et seq. of the California Corporations Code. | |||||||||
The general partners are solely responsible for partnership business, subject to the voting rights of the limited partners on specified matters. Any one of the general partners acting alone has the power and authority to act for and bind the partnership. | |||||||||
A majority of the outstanding limited partnership interests may, without the permission of the general partners, vote to: (i) terminate the partnership, (ii) amend the limited partnership agreement, (iii) approve or disapprove the sale of all or substantially all of the assets of the partnership and (iv) remove or replace one or all of the general partners. | |||||||||
The approval of all the limited partners is required to elect a new general partner to continue the partnership business where there is no remaining general partner after a general partner ceases to be a general partner other than by removal. | |||||||||
On the mortgage loans originated for RMI VIII, RMC may collect loan brokerage commissions (points) limited to an amount not to exceed four percent per year of the total partnership assets. The loan brokerage commissions are paid by the borrowers and thus, are not an expense of the partnership. The proceeds from loan brokerage commissions and other fees earned are the source of funds for the repayment of the formation loans by RMC. | |||||||||
Profits and losses are allocated among the limited partners according to their respective capital accounts after one percent of profits and losses is allocated to the general partners, and are subject to subsequent adjustment as a result of quarterly and year-end accounting and reporting. | |||||||||
RMC, Gymno, and Burwell, as the general partners, are entitled to one percent of the profits and losses of RMI VIII. Beginning with calendar year 2010, and continuing until January 1, 2020, Gymno and RMC each assigned its right to one-third of one percent of profits and losses to Burwell in exchange for Burwell assuming one hundred percent of the general partners’ equity deficit. | |||||||||
Members should refer to the company's operating agreement for a more complete description of the provisions. | |||||||||
Election to receive monthly, quarterly or annual distributions | |||||||||
At the time of their subscription for units, partners elect to have distributed to them their monthly, quarterly or annual allocation of profits, or to have profits allocated to their capital accounts to compound. Subject to certain limitations, those electing compounding may subsequently change their election. A partner’s election to have cash distributions is irrevocable. | |||||||||
Liquidity, capital withdrawals and early withdrawals | |||||||||
There are substantial restrictions on transferability of units and accordingly an investment in the partnership is non-liquid. Limited partners have no right to withdraw from the partnership or to obtain the return of their capital account for at least one year from the date of purchase of units. These restrictions include but are not limited to availability of sufficient cash flow. The partnership does not establish a reserve from which to fund withdrawals and, accordingly, the partnership’s capacity to return a limited partner’s capital is restricted to the availability of partnership cash flow. Furthermore, no more than 20% of the total limited partners’ capital accounts outstanding at the beginning of any year, may be liquidated during any calendar year. | |||||||||
In order to provide a certain degree of liquidity to the limited partners after the one-year period, limited partners may withdraw all or part of their capital accounts from the partnership in four quarterly installments beginning on the last day of the calendar quarter following the quarter in which the notice of withdrawal is given, subject to a 10% early withdrawal penalty. The 10% penalty is applicable to the amount withdrawn as stated in the notice of withdrawal and will be deducted from the capital account. | |||||||||
Once a limited partner has been in the partnership for the minimum five-year period, no penalty is imposed if withdrawal is made in twenty quarterly installments or longer. Notwithstanding the minimum withdrawal period, the general partners, at their discretion may liquidate all or part of a limited partner’s capital account in four quarterly installments beginning on the last day of the calendar quarter following the quarter in which the notice of withdrawal is given, subject to a 10% early withdrawal penalty applicable to any sums withdrawn prior to the time when such sums could have been withdrawn without penalty. | |||||||||
In March 2009, in response to economic conditions then existing, the partnership suspended capital liquidations. In the fourth quarter of 2009 the partnership entered into a forbearance agreement with its banks and subsequently entered into an amended and restated loan agreement (dated October 2010) which included additional restrictions on liquidations and distributions of partners’ capital. The bank loan was paid off in September 2012. As the partnership’s three most recently completed quarters have been profitable, starting January 1, 2014, the partnership will be considering liquidation requests on a limited basis. For the first quarter, which ends March 31, 2014, those investors that had a liquidation payment pending as of March 31, 2009 will resume liquidation payments based on their current capital balance, subject to available cash flow, and in the priority order detailed in the partnership agreement. The partnership resumed accepting requests for capital account liquidation on January 1, 2014. For those limited partners that requested liquidation between January 1, 2014 and prior to March 31, 2014, we will add their liquidation requests to those previously existing and they will be scheduled to commence June 30, 2014. Each quarter, the partnership will allocate a specific amount of cash for liquidation payments. In the event that the cash allocated is insufficient to meet the liquidation requests of all limited partners requesting liquidations, then liquidation requests will be disbursed based upon the priority schedule set forth in the partnership agreement and then on a pro-rata basis. The partnership intends to continue to accept liquidation requests in future quarters and these requests will be added to previously existing requests and be subject to the same priorities and pro-rata allocation of distributable cash as described in the partnership agreement. | |||||||||
Partnership offerings | |||||||||
At December 31, 2008, the partnership had completed its sixth offering stage. Of approved aggregate offerings of $300,000,000, total partnership units sold were $299,813,000. | |||||||||
A recap of the offerings by the partnership follows. | |||||||||
● | A minimum of $250,000 and a maximum of $15,000,000 in partnership units were initially offered through qualified broker-dealers. This initial offering closed in October 1996. | ||||||||
● | December 1996, commenced offering of $30,000,000 (closed August 2000) | ||||||||
● | August 2000, commenced offering of $30,000,000 (closed April 2002) | ||||||||
● | October 2002, commenced offering of $50,000,000 (closed October 2003) | ||||||||
● | October 2003, commenced offering of $75,000,000 (closed August 2005) | ||||||||
● | August 2005, commenced offering of $100,000,000 (closed November 2008) | ||||||||
No additional offerings are contemplated at this time. | |||||||||
Sales commissions - formation loans | |||||||||
Sales commissions are not paid directly by the partnership out of the offering proceeds. Instead, the partnership loans to RMC, one of the general partners, amounts to pay all sales commissions and amounts payable in connection with unsolicited orders. This loan is unsecured and non-interest bearing and is referred to as the “formation loan,” and is being repaid equally over a ten year period commencing the year after the close of a partnership offering. The formation loan has been deducted from limited partners’ capital in the consolidated balance sheets. As payments on the formation loan are received from RMC, the deduction from capital will be reduced. Interest has been imputed at the market rate of interest in effect in the years the offering closed. If the general partners are removed and RMC is no longer receiving payments for services rendered, the formation loan is forgiven. | |||||||||
RMC acts as the broker in originating mortgage loans for RMI VIII. The corresponding brokerage commissions paid by borrowers from mortgage loans made by these funds are the primary source of cash used to repay the formation loans. RMI VIII was prohibited by its lending banks from originating new loans under the terms of an Amended and Restated Loan Agreement dated October 2010, and a preceding forbearance agreement that was in effect in the fourth quarter of 2009, until the bank loan was repaid in full, September 2012. The amended loan and forbearance agreements were the result of a technical (i.e. non-payment) covenant default under the original loan. As a result, RMC was deprived of the opportunity to receive brokerage commissions on loans by RMI VIII for the period from the fourth quarter of 2009 continuing through September 30, 2012, a period of almost three years. During that period, despite receiving no loan brokerage commissions, RMC continued to make the annual formation loan payments of approximately $1.8 million per year (or $5.4 million for the three years) from its own cash reserves that existed as of the date of the forbearance agreement. RMC believes it would have had a reasonable argument that the annual formation loan payments should be suspended until such time as lending by RMI VIII was permitted to resume and brokerage commissions could be earned, but RMC elected not to take such an approach and, instead, continued to make annual formation loan payments due to concerns that the lending banks would view nonpayment of the formation loan as another technical loan default that might have led to a “distressed sale” liquidation of RMI VIII’s assets, resulting in substantial loss of limited partners’ capital. | |||||||||
As the bank loan was fully repaid as of September 2012, RMC has temporarily suspended annual formation loan payments, beginning with the payment due December 31, 2012, for the three-year period then beginning, which is a period commensurate with the period during which lending by RMI VIII was prohibited and RMC was deprived of loan brokerage commissions. | |||||||||
The formation loans made in conjunction with the offerings are as follows. | |||||||||
● | For the initial offering ($15,000,000) totaled $1,075,000, which was 7.2% of limited partners’ contributions of $14,932,000, and was repaid in 2006. | ||||||||
● | For the 1996 offering ($30,000,000) totaled $2,272,000, which was 7.6% of limited partners’ contributions of $29,993,000, and was repaid in 2010. | ||||||||
● | For the 2000 offering ($30,000,000) totaled $2,218,000, which was 7.4% of the limited partners’ contributions of $29,999,000, and is to be repaid, without interest, in ten annual installments of $221,800, which commenced in 2003. | ||||||||
● | For the 2002 offering ($50,000,000) totaled $3,777,000, which was 7.6% of the limited partners’ contributions of $49,985,000, and is to be repaid, without interest, in ten annual installments of $377,700, which commenced in 2004. | ||||||||
● | For the 2003 offering ($75,000,000) totaled $5,661,000, which was 7.6% of the limited partners’ contributions of $74,904,000, and is to be repaid, without interest, in ten annual installments of $566,000, which commenced in 2007. | ||||||||
● | For the 2005 offering ($100,000,000) totaled $7,564,000 as of December 31, 2008, which was 7.6% of the limited partners’ contributions of $100,000,000, and is to be repaid, without interest, in ten annual installments of $756,400, which commenced in 2009. | ||||||||
For the offerings, sales commissions paid to brokers ranged from 0% (units sold by general partners) to 9% of gross proceeds. The partnership had anticipated the sales commissions would approximate 7.6% based on the assumption that 65% of investors will elect to reinvest profits, thus generating full 9% commissions. The actual sales commission percentage for all six offerings combined was 7.5%. | |||||||||
Income taxes and Partners’ capital – tax basis | |||||||||
Income taxes – federal and state – are the obligation of the partners, if and when taxes apply, other than for the minimum annual California franchise tax paid by the partnership. | |||||||||
A reconciliation of partners’ capital in the consolidated financial statements to the tax basis of partners’ capital at December 31 is presented in the following table ($ in thousands). | |||||||||
2013 | 2012 | ||||||||
Partners’ capital per consolidated financial statements | 193,212 | 195,056 | |||||||
Unallocated syndication costs | — | 321 | |||||||
Allowance for loan losses | 8,790 | 19,815 | |||||||
Book vs. tax basis-real estate owned | (15,475 | ) | (11,721 | ) | |||||
Formation loans receivable | 7,627 | 7,627 | |||||||
Partners’ capital - tax basis | 194,154 | 211,098 | |||||||
Term of the partnership | |||||||||
The partnership is scheduled to terminate in 2032, unless sooner terminated as provided in the partnership agreement. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Significant Accounting Policies [Text Block] | ' | ||
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Basis of presentation | |||
The partnership’s consolidated financial statements include the accounts of the partnership, its wholly-owned subsidiaries, and its 72.5%-owned subsidiary. All significant intercompany transactions and balances have been eliminated in consolidation. | |||
Reclassifications | |||
Certain reclassifications, not affecting previously reported net income or total partner capital, have been made to the previously issued consolidated financial statements to conform to the current year presentation. | |||
Management estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates relate principally to the determination of the allowance for loan losses, including, when applicable, the valuation of impaired loans, (which itself requires determining the fair value of the collateral), and the valuation of real estate held for sale and held as investment, at acquisition and subsequently. Actual results could differ significantly from these estimates. | |||
GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. | |||
Fair values of assets and liabilities are determined based on the fair value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used. | |||
- | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | ||
- | Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. | ||
- | Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the company’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the company’s own data. | ||
Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the fair value of the collateral, net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. This computation is done for each loan (whether impaired or performing), and while loans secured by collateral of similar property type are grouped, there is enough distinction and variation in the collateral that a loan-by-loan, collateral-by-collateral analysis is appropriate. | |||
The fair value of the collateral is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. In some years (notably 2009, 2010 and to a lesser extent 2011 and 2012) due to low levels of real estate transactions, and an increased number of transactions that were distressed (i.e., executed by an unwilling seller – often compelled by lenders or other claimants – and/or executed without broad exposure or with market exposure but with few, if any, resulting offers), more interpretation, judgment and interpolation/extrapolation within and across property types was required. | |||
Appraisals of commercial real property generally present three approaches to estimating value: 1) market comparables or sales approach; 2) cost to replace and 3) capitalized cash flows or investment approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g. as-is, when-completed, or for land when-entitled); and determining the unit of value (e.g. as a series of individual unit sales or as a bulk disposition). In some prior years, as has been previously noted, the appraisal process, was further complicated by the low transaction volumes of which a very high percentage were considered to be distressed sales, and other poor market conditions. | |||
Management has the requisite familiarity with the markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value, and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types. | |||
Cash and cash equivalents | |||
The partnership considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. Periodically, partnership cash balances in banks exceed federally insured limits. | |||
Loans and interest income | |||
Loans generally are stated at the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the partnership’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums, and attorney fees. Advances generally are stated at the unpaid principal balance and accrue interest until repaid by the borrower. | |||
The partnership may fund a specific loan origination net of an interest reserve to insure timely interest payments at the inception (one to two years) of the loan. As monthly interest payments become due, the partnership funds the payments into the affiliated trust account. | |||
If based upon current information and events, it is probable the partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement, then a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. If a valuation allowance had been established on an impaired loan, any subsequent payments on impaired loans are applied to late fees and then to reduce first the accrued interest, then advances, and then unpaid principal. | |||
From time to time, the partnership negotiates and enters into loan modifications with borrowers whose loans are delinquent. If the loan modification results in a significant reduction in the cash flow compared to the original note, the modification is deemed a troubled debt restructuring and a loss is recognized. In the normal course of the partnership’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the matured loan was previously designated as impaired. | |||
Interest is accrued daily based on the unpaid principal balance of the loans. An impaired loan continues to accrue as long as the loan is in the process of collection and is considered to be well-secured. Loans are placed on non-accrual status at the earlier of management’s determination that the primary source of repayment will come from the foreclosure and subsequent sale of the collateral securing the loan (which usually occurs when a notice of sale is filed) or when the loan is no longer considered well-secured. When a loan is placed on non-accrual status, the accrual of interest is discontinued; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent interest and principal payments become current in accordance with the terms of the loan agreement. | |||
Allowance for loan losses | |||
Loans and the related accrued interest and advances are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Delinquencies are determined based upon contractual terms. For impaired loans, a provision is made for loan losses to adjust the allowance for loan losses to an amount considered by management to be adequate, with due consideration to collateral values, such that the net carrying amount (unpaid principal balance, plus advances, plus accrued interest less the specific allowance) is reduced to the present value of future cash flows discounted at the loan’s effective interest rate, or, if a loan is collateral dependent, to the estimated fair value of the related collateral, net of any senior loans, and net of any costs to sell in arriving at net realizable value if planned disposition of the asset securing a loan is by way of sale. | |||
The fair value estimates are derived from information available in the real estate markets including similar property, and may require the experience and judgment of third parties such as commercial real estate appraisers and brokers. | |||
Loans determined not to be individually impaired are grouped by the property type of the underlying collateral, and for each loan and for the total by property type, the amount of protective equity or amount of exposure to loss (i.e., the dollar amount of the deficiency of the fair value of the underlying collateral to the loan balance) is computed. | |||
Based on its knowledge of the borrowers and their historical (and expected) performance, and the exposure to loss as indicated in the analysis, management estimates an appropriate reserve by property type for probable credit losses in the portfolio. Because the partnership is an asset-based lender, except as to owner-occupied residences, and because specific regions, neighborhoods and even properties within the same neighborhoods, vary significantly as to real estate values and transaction activity, general market trends, which may be indicative of a change in the risk of a loss, and a borrower’s credit worthiness are secondary to the condition of the property, the property type and the neighborhood/region in which the property is located, and do not enter substantially into the determination of the amount of the non-specific (i.e. general) reserves. | |||
The partnership charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. | |||
Real estate owned (REO) held for sale | |||
REO, held for sale includes real estate acquired in full or partial settlement of loan obligations generally through foreclosure that is being marketed for sale. REO, held for sale is recorded at acquisition at the lower of the recorded investment in the loan, plus any senior indebtedness, or at the property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. Any excess of the recorded investment in the loan over the net realizable value is charged against the allowance for loan losses. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, REO, held for sale is analyzed periodically for changes in fair values and any subsequent write down is charged to operating expenses. Any recovery in the fair value subsequent to such a write down is recorded – not to exceed the net realizable value at acquisition – as an offset to operating expenses. Gains or losses on sale of the property are included in REO - operating expense in the consolidated statements of operations. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. | |||
Real estate owned (REO), held as investment, net | |||
REO, held as investment, net includes real estate acquired in full or partial settlement of loan obligations generally through foreclosure that is not being marketed for sale and is either being operated, such as rental properties; is being managed through the development process, including obtaining appropriate and necessary entitlements, permits and construction; or are idle properties awaiting more favorable market conditions. REO, held as investment, net is recorded at acquisition at the lower of the recorded investment in the loan, plus any senior indebtedness, or at the property’s estimated fair value, net. After acquisition, costs incurred relating to the development and improvement of the property are capitalized, whereas costs relating to operating or holding the property are expensed. Subsequent to acquisition, management periodically compares the carrying value of real estate to expected undiscounted future cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds future undiscounted cash flows, the assets are reduced to estimated fair value. | |||
Rental income | |||
Rental income is recognized when earned in accordance with the lease agreement. For commercial leases, the costs associated with originating the lease are amortized over the lease term. Residential lease terms generally range from month-to-month to one year, and the expenses of originating the lease are expensed as incurred. | |||
Depreciation | |||
Real estate owned held as investment that is being operated is depreciated on a straight-line basis over the estimated useful life of the property once the asset is placed in service. | |||
Net income per $1,000 invested | |||
Amounts reflected in the statements of operations as net income per $1,000 invested by limited partners for the entire period are amounts allocated to limited partners who held their investment throughout the period and have elected to either leave their profits to compound or have elected to receive periodic distributions of their net income. Individual income is allocated each month based on the limited partners’ pro rata share of partners’ capital. Because the net income percentage varies from month to month, amounts per $1,000 will vary for those individuals who made or withdrew investments during the period, or selected other options. |
Note_3_General_Partners_and_Ot
Note 3 - General Partners and Other Related Parties | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
NOTE 3 – GENERAL PARTNERS AND OTHER RELATED PARTIES | |||||||||||||||||||||||||||||
The general partners are entitled to one percent of the profits and losses, which amounted to approximately $4,000 and $(57,000) for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Formation loan | |||||||||||||||||||||||||||||
The formation loan transactions are summarized in the following table at December 31, 2013 ($ in thousands). | |||||||||||||||||||||||||||||
Initial Offering of $15,000 | 1996 Offering of $30,000 | 2000 Offering of $30,000 | 2002 Offering of $50,000 | 2003 Offering of $75,000 | 2005 Offering of $100,000 | Total | |||||||||||||||||||||||
Limited Partner contributions | $ | 14,932 | $ | 29,993 | $ | 29,999 | $ | 49,985 | $ | 74,904 | $ | 100,000 | $ | 299,813 | |||||||||||||||
Formation Loan | $ | 1,075 | $ | 2,272 | $ | 2,218 | $ | 3,777 | $ | 5,661 | $ | 7,564 | $ | 22,567 | |||||||||||||||
Unamortized discount on Formation loan | — | — | (23 | ) | (80 | ) | (414 | ) | (1,317 | ) | (1,834 | ) | |||||||||||||||||
Formation Loan, net | 1,075 | 2,272 | 2,195 | 3,697 | 5,247 | 6,247 | 20,733 | ||||||||||||||||||||||
Repayments | (991 | ) | (2,099 | ) | (1,883 | ) | (2,948 | ) | (3,414 | ) | (2,962 | ) | (14,297 | ) | |||||||||||||||
Early withdrawal penalties | (84 | ) | (173 | ) | (137 | ) | (100 | ) | (142 | ) | (7 | ) | (643 | ) | |||||||||||||||
Formation Loan, net at December 31, 2013 | — | — | 175 | 649 | 1,691 | 3,278 | 5,793 | ||||||||||||||||||||||
Unamortized discount on Formation loan | — | — | 23 | 80 | 414 | 1,317 | 1,834 | ||||||||||||||||||||||
Balance, December 31, 2013 | $ | — | $ | — | $ | 198 | $ | 729 | $ | 2,105 | $ | 4,595 | $ | 7,627 | |||||||||||||||
Percent loaned | 7.2 | % | 7.6 | % | 7.4 | % | 7.6 | % | 7.6 | % | 7.6 | % | 7.5 | % | |||||||||||||||
Interest has been imputed at the market rate of interest in effect at the date the offerings closed which ranged from 4.00% to 9.50%. During 2013 and 2012, $389,000 and $207,000, respectively, were recorded related to amortization of the discount on imputed interest. | |||||||||||||||||||||||||||||
The future minimum payments on the formation loan are presented in the following table ($ in thousands). | |||||||||||||||||||||||||||||
2014 | $ | — | |||||||||||||||||||||||||||
2015 | 1,898 | ||||||||||||||||||||||||||||
2016 | 1,674 | ||||||||||||||||||||||||||||
2017 | 1,323 | ||||||||||||||||||||||||||||
2018 | 1,163 | ||||||||||||||||||||||||||||
Thereafter | 1,569 | ||||||||||||||||||||||||||||
Total | $ | 7,627 | |||||||||||||||||||||||||||
RMC acts as the broker in originating mortgage loans for RMI VIII. The corresponding brokerage commissions paid by borrowers from mortgage loans made by these funds are the primary source of cash used to repay the formation loans. RMI VIII was prohibited by its lending banks from originating new loans under the terms of an Amended and Restated Loan Agreement dated October 2010, and a preceding forbearance agreement that was in effect in the fourth quarter of 2009, until the bank loan was repaid in full, September 2012. The amended loan and forbearance agreements were the result of a technical (i.e. non-payment) covenant default under the original loan. As a result, RMC was deprived of the opportunity to receive brokerage commissions on loans by RMI VIII for the period from the fourth quarter of 2009 continuing through September 30, 2012, a period of almost three years. During that period, despite receiving no loan brokerage commissions, RMC continued to make the annual formation loan payments of approximately $1.8 million per year (or $5.4 million for the three years) from its own cash reserves that existed as of the date of the forbearance agreement. RMC believes it would have had a reasonable argument that the annual formation loan payments should be suspended until such time as lending by RMI VIII was permitted to resume and brokerage commissions could be earned, but RMC elected not to take such an approach and, instead, continued to make annual formation loan payments due to concerns that the lending banks would view nonpayment of the formation loan as another technical loan default that might have led to a “distressed sale” liquidation of RMI VIII’s assets, resulting in substantial loss of limited partners’ capital. | |||||||||||||||||||||||||||||
As the bank loan was fully repaid as of September 2012, RMC has temporarily suspended annual formation loan payments, beginning with the payment due December 31, 2012, for the three-year period then beginning, which is a period commensurate with the period during which lending by RMI VIII was prohibited and RMC was deprived of loan brokerage commissions. | |||||||||||||||||||||||||||||
The following commissions and/or fees are paid by the borrowers to the general partners and their affiliates and are not an expense of the partnership. | |||||||||||||||||||||||||||||
Brokerage commissions, loan originations | |||||||||||||||||||||||||||||
For fees in connection with the review, selection, evaluation, negotiation and extension of loans, the general partners may collect loan brokerage commissions (points) limited to an amount not to exceed 4% of the total partnership assets per year. In 2013 and 2012, loan brokerage commissions paid to the general partners by the borrowers were $431,000 and $116,000, respectively. | |||||||||||||||||||||||||||||
Other fees | |||||||||||||||||||||||||||||
The partnership agreement provides for other fees such as reconveyance, mortgage assumption and mortgage extension fees. Such fees are incurred by the borrowers and are paid to the general partners. In 2013 and 2012, these fees totaled $21,641 and $1,826, respectively. | |||||||||||||||||||||||||||||
The following commissions and fees are paid by the partnership to RMC. | |||||||||||||||||||||||||||||
Mortgage servicing fees | |||||||||||||||||||||||||||||
RMC may earn mortgage servicing fees of up to 1.5% annually of the unpaid principal of the loan portfolio or such lesser amount as is reasonable and customary in the geographic area where the property securing the mortgage is located from RMI VIII. Historically, RMC charged one percent annually, and at times waived additional amounts to improve the partnership’s earnings. Such fee waivers were not made for the purpose of providing the partnership with sufficient funds to satisfy withdrawal requests, nor were such waivers made in order to meet any required level of distributions, as the partnership has no such required level of distributions. RMC does not use any specific criteria in determining the amount of fees, if any, to be waived. The decision to waive fees and the amount, if any, to be waived, is made by RMC in its sole discretion. | |||||||||||||||||||||||||||||
Mortgage servicing fees paid to RMC by the partnership are presented in the following table for the years ended December 31, ($ in thousands). | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Chargeable by RMC | $ | 884 | $ | 1,083 | |||||||||||||||||||||||||
Waived by RMC | (295 | ) | (361 | ) | |||||||||||||||||||||||||
Charged | $ | 589 | $ | 722 | |||||||||||||||||||||||||
Asset management fees | |||||||||||||||||||||||||||||
The general partners receive monthly fees for managing the partnership’s loan portfolio and operations of up to 1/32 of 1% of the “net asset value” (3/8 of 1% annually). At times, the general partners have charged less than the maximum allowable rate to enhance the partnership’s earnings. Such fee waivers were not made with the purpose of providing the partnership with sufficient funds to satisfy withdrawal requests, nor to meet any required level of distributions, as the partnership has no such required level of distributions. RMC does not use any specific criteria in determining the exact amount of fees, if any, to be waived. The decision to waive fees and the amount, if any, to be waived, is made by RMC in its sole discretion. | |||||||||||||||||||||||||||||
Asset management fees for the years ended December 31, 2013 and 2012 were $765,000 and $840,000, respectively. No asset management fees were waived during any period reported. | |||||||||||||||||||||||||||||
Costs from Redwood Mortgage Corp. | |||||||||||||||||||||||||||||
RMC is reimbursed by the partnership for operating expenses incurred on behalf of the partnership, including without limitation, accounting and audit fees, legal fees and expenses, postage and preparation of reports to limited partners, and out-of-pocket general and administration expenses. The decision to request reimbursement of any qualifying charges is made by RMC in its sole discretion. During 2013 and 2012, operating expenses totaling $1,613,000 and $1,321,000, respectively, were reimbursed to RMC. RMC did not waive its right to request reimbursement of any qualifying charges during 2013 and 2012. | |||||||||||||||||||||||||||||
NOTE 3 – GENERAL PARTNERS AND RELATED PARTIES (continued) | |||||||||||||||||||||||||||||
Syndication costs | |||||||||||||||||||||||||||||
The partnership bears its own syndication costs, other than certain sales commissions, including legal and accounting expenses, printing costs, selling expenses and filing fees. Syndication costs are charged against partners’ capital and are being allocated to individual partners consistent with the partnership agreement. | |||||||||||||||||||||||||||||
Through December 31, 2013, syndication costs of $5,010,000 had been incurred by the partnership with the following distribution ($ in thousands). | |||||||||||||||||||||||||||||
Costs incurred | $ | 5,010 | |||||||||||||||||||||||||||
Early withdrawal penalties applied | (190 | ) | |||||||||||||||||||||||||||
Allocated to date | (4,820 | ) | |||||||||||||||||||||||||||
December 31, 2013 balance | $ | — | |||||||||||||||||||||||||||
The syndication costs associated with the offerings is as follows. | |||||||||||||||||||||||||||||
● | For the initial offering ($15,000,000) were limited to the lesser of 10% of the gross proceeds or $600,000 with any excess being paid by the general partners. Applicable gross proceeds were $14,932,000. Related expenditures totaled $582,000 ($570,000 syndication costs plus $12,000 organization expense) or 3.9% of gross proceeds. | ||||||||||||||||||||||||||||
● | For the 1996 offering ($30,000,000) were limited to the lesser of 10% of the gross proceeds or $1,200,000 with any excess being paid by the general partners. Gross proceeds of the offering were $29,993,000. Syndication costs totaled $598,000 or 2% of gross proceeds. | ||||||||||||||||||||||||||||
● | For the 2000 offering ($30,000,000) were limited to the lesser of 10% of the gross proceeds or $1,200,000 with any excess being paid by the general partners. Gross proceeds of the offering were $29,999,000. Syndication costs totaled $643,000 or 2.1% of gross proceeds. | ||||||||||||||||||||||||||||
● | For the 2002 offering ($50,000,000) were limited to the lesser of 10% of the gross proceeds or $2,000,000 with any excess to be paid by the general partners. Gross proceeds of the offering were $49,985,000. Syndication costs totaled $658,000 or 1.3% of gross proceeds. | ||||||||||||||||||||||||||||
● | For the 2003 offering ($75,000,000) were limited to the lesser of 10% of the gross proceeds or $3,000,000 with any excess to be paid by the general partners. Gross proceeds of the offering were $74,904,000. Syndication costs totaled $789,000 or 1.1% of gross proceeds. | ||||||||||||||||||||||||||||
● | For the 2005 offering ($100,000,000) were limited to the lesser of 10% of the gross proceeds or $4,000,000 with any excess to be paid by the general partners. Gross proceeds of the offering were $100,000,000. Syndication costs totaled $1,752,000 or 1.75% of gross proceeds. | ||||||||||||||||||||||||||||
Note_4_Loans
Note 4 - Loans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||
Financing Receivables [Text Block] | ' | ||||||||||||||||||||||||
NOTE 4 – LOANS | |||||||||||||||||||||||||
The partnership generally funds loans with a fixed interest rate and a five-year term. As of December 31, 2013, approximately 50% of the partnership’s loans (representing 54% of the aggregate principal balance of the partnership’s loan portfolio) have a five year term or less from loan inception. The remaining loans have terms longer than five years. | |||||||||||||||||||||||||
As of December 31, 2013, approximately 47% of the loans outstanding (representing 84% of the aggregate principal balance of the partnership’s loan portfolio) provide for monthly payments of interest only, with the principal due in full at maturity. The remaining loans require monthly payments of principal and interest, typically calculated on a 30 year amortization, with the remaining principal balance due at maturity. | |||||||||||||||||||||||||
The partnership makes construction and rehabilitation loans which are not fully disbursed at loan inception. The partnership has approved the borrowers up to a maximum loan balance; however, disbursements are made periodically during completion phases of the construction or rehabilitation or at such other times as required under the loan documents and would be funded from available cash balances and future cash receipts. The partnership does not maintain a separate cash reserve to hold the undisbursed obligations, which are intended to be funded. As of December 31, 2013, there were no such loans. | |||||||||||||||||||||||||
Loans unpaid principal balance (principal) | |||||||||||||||||||||||||
Secured loan transactions are summarized in the following table for the years ended December 31, ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal, January 1 | $ | 60,870 | $ | 73,386 | |||||||||||||||||||||
Loans funded or acquired | 22,285 | 10,522 | |||||||||||||||||||||||
Principal collected | (9,931 | ) | (17,401 | ) | |||||||||||||||||||||
Loans sold to affiliates | (2,107 | ) | (1,189 | ) | |||||||||||||||||||||
Foreclosures | (18,975 | ) | (3,728 | ) | |||||||||||||||||||||
Other – loans charged off against allowance | (252 | ) | (720 | ) | |||||||||||||||||||||
Principal, December 31 | $ | 51,890 | $ | 60,870 | |||||||||||||||||||||
During 2013 and 2012, the partnership renewed two and four loans, respectively, with an aggregate principal of approximately $349,000 and $967,000, respectively that were not included in the activity shown on the table above. | |||||||||||||||||||||||||
Loan characteristics | |||||||||||||||||||||||||
Secured loans had the characteristics presented in the following table ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of secured loans | 36 | 39 | |||||||||||||||||||||||
Secured loans – principal | $ | 51,890 | $ | 60,870 | |||||||||||||||||||||
Secured loans – lowest interest rate (fixed) | 4 | % | 3 | % | |||||||||||||||||||||
Secured loans – highest interest rate (fixed) | 12 | % | 12 | % | |||||||||||||||||||||
Average secured loan – principal | $ | 1,441 | $ | 1,561 | |||||||||||||||||||||
Average principal as percent of total principal | 2.78 | % | 2.56 | % | |||||||||||||||||||||
Average principal as percent of partners’ capital | 0.75 | % | 0.8 | % | |||||||||||||||||||||
Average principal as percent of total assets | 0.59 | % | 0.63 | % | |||||||||||||||||||||
Largest secured loan – principal | $ | 16,312 | $ | 16,697 | |||||||||||||||||||||
Largest principal as percent of total principal | 31.44 | % | 27.43 | % | |||||||||||||||||||||
Largest principal as percent of partners’ capital | 8.44 | % | 8.56 | % | |||||||||||||||||||||
Largest principal as percent of total assets | 6.65 | % | 6.74 | % | |||||||||||||||||||||
Smallest secured loan – principal | $ | 79 | $ | 87 | |||||||||||||||||||||
Smallest principal as percent of total principal | 0.15 | % | 0.14 | % | |||||||||||||||||||||
Smallest principal as percent of partners’ capital | 0.04 | % | 0.04 | % | |||||||||||||||||||||
Smallest principal as percent of total assets | 0.03 | % | 0.04 | % | |||||||||||||||||||||
Number of counties where security is located (all California) | 17 | 19 | |||||||||||||||||||||||
Largest percentage of principal in one county | 41.68 | % | 46.18 | % | |||||||||||||||||||||
Number of secured loans in foreclosure status | 2 | 6 | |||||||||||||||||||||||
Secured loans in foreclosure – principal | $ | 16,689 | $ | 1,910 | |||||||||||||||||||||
Number of secured loans with an interest reserve | — | — | |||||||||||||||||||||||
Interest reserves | $ | — | $ | — | |||||||||||||||||||||
As of December 31, 2013, the partnership’s largest loan, in the unpaid principal balance of $16,312,000 (representing 31.44% of outstanding secured loans and 6.65% of partnership assets) has an interest rate of 5.00% and is secured by 75 units in a 128 unit condominium complex located in Contra Costa County, California. This loan matured April 1, 2012. A court appointed receiver is overseeing the management of the property and exploring the market for the disposition of the remaining units. | |||||||||||||||||||||||||
Larger loans sometimes increase above 10% of the secured loan portfolio or partnership assets as these amounts decrease due to limited partner withdrawals and loan payoffs and due to restructuring of existing loans. | |||||||||||||||||||||||||
NOTE 4 – LOANS (continued) | |||||||||||||||||||||||||
Lien position | |||||||||||||||||||||||||
At funding secured loans had the following lien positions and are presented in the following table ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
First trust deeds | 19 | $ | 36,816 | 71 | % | 17 | $ | 33,785 | 56 | % | |||||||||||||||
Second trust deeds | 16 | 14,784 | 28 | 21 | 26,789 | 44 | |||||||||||||||||||
Third trust deeds | 1 | 290 | 1 | 1 | 296 | — | |||||||||||||||||||
Total secured loans | 36 | 51,890 | 100 | % | 39 | 60,870 | 100 | % | |||||||||||||||||
Liens due other lenders at loan closing | 53,098 | 80,875 | |||||||||||||||||||||||
Total debt | $ | 104,988 | $ | 141,745 | |||||||||||||||||||||
Appraised property value at loan closing | $ | 148,215 | $ | 199,392 | |||||||||||||||||||||
Percent of total debt to appraised values (LTV) at loan closing (1) | 70.83 | % | 71.1 | % | |||||||||||||||||||||
-1 | Based on appraised values and liens due other lenders at loan closing. The loan to value computation does not take into account subsequent increases or decreases in security property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders by payments or interest accruals, if any. Property values likely have changed, particularly over the last four years, and the portfolio’s current loan to value ratio likely is higher than this historical ratio. | ||||||||||||||||||||||||
Property type | |||||||||||||||||||||||||
Secured loans summarized by property type are presented in the following table ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
Single family | 27 | $ | 33,771 | 65 | % | 31 | $ | 46,295 | 76 | % | |||||||||||||||
Multi-family | 1 | 1,000 | 2 | 2 | 2,557 | 4 | |||||||||||||||||||
Commercial(2) | 8 | 17,119 | 33 | 6 | 12,018 | 20 | |||||||||||||||||||
Total secured loans | 36 | $ | 51,890 | 100 | % | 39 | $ | 60,870 | 100 | % | |||||||||||||||
-2 | Includes one loan with a principal balance of approximately $532,000, secured by an improved land lot, with plans to be developed as a five-unit townhouse by the borrower. | ||||||||||||||||||||||||
Single family properties include owner-occupied and non-owner occupied single family homes (1-4 unit residential buildings), condominium units, townhouses, and condominium complexes. From time to time, loan originations in one sector or property type become more active due to prevailing market conditions. The current concentration of the partnership’s loan portfolio in condominium properties may pose additional or increased risks. Recovery of the condominium sector of the real estate market is generally expected to lag behind that of single-family residences. In addition, availability of financing for condominium properties has been, and will likely continue to be, constricted and more difficult to obtain than other property types. As of December 31, 2013 and 2012, $16,312,000 and $36,855,000, respectively, of the partnership’s loans were secured by condominium properties. | |||||||||||||||||||||||||
Property type (continued) | |||||||||||||||||||||||||
Condominiums may create unique risks for the partnership that are not present for loans made on other types of properties. In the case of condominiums, a board of managers generally has discretion to make decisions affecting the condominium building, including regarding assessments to be paid by the unit owners, insurance to be maintained on the building, and the maintenance of that building, which may have an impact on the partnership loans that are secured by such condominium property. | |||||||||||||||||||||||||
The partnership may have less flexibility in foreclosing on the collateral for a loan secured by condominiums upon a default by the borrower. Among other things, the partnership must consider the governing documents of the homeowners association and the state and local laws applicable to condominium units, which may require an owner to obtain a public report prior to the sale of the units. | |||||||||||||||||||||||||
Distribution by California counties | |||||||||||||||||||||||||
The distribution of secured loans outstanding by the California county in which the primary collateral is located is presented in the following table at December 31, 2013 ($ in thousands). | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Unpaid Principal Balance | Percent | Unpaid Principal Balance | Percent | ||||||||||||||||||||||
San Francisco | $ | 21,627 | 41.68 | % | $ | 28,115 | 46.18 | % | |||||||||||||||||
San Francisco Bay Area(1) | |||||||||||||||||||||||||
Contra Costa | 16,647 | 32.08 | 17,927 | 29.44 | |||||||||||||||||||||
Santa Clara | 3,208 | 6.18 | 3,182 | 5.23 | |||||||||||||||||||||
San Mateo | 1,765 | 3.4 | 665 | 1.09 | |||||||||||||||||||||
Alameda | 1,260 | 2.43 | 1,682 | 2.76 | |||||||||||||||||||||
Solano | — | — | 1,641 | 2.7 | |||||||||||||||||||||
Napa | 406 | 0.78 | 411 | 0.68 | |||||||||||||||||||||
Marin | 180 | 0.35 | 180 | 0.3 | |||||||||||||||||||||
23,466 | 45.22 | 25,688 | 42.2 | ||||||||||||||||||||||
Other Northern California | |||||||||||||||||||||||||
Sacramento | 249 | 0.48 | 2,518 | 4.14 | |||||||||||||||||||||
Calaveras | 182 | 0.35 | 196 | 0.32 | |||||||||||||||||||||
Monterey | 178 | 0.34 | 183 | 0.3 | |||||||||||||||||||||
San Benito | 97 | 0.19 | 98 | 0.16 | |||||||||||||||||||||
Butte | 79 | 0.15 | 115 | 0.19 | |||||||||||||||||||||
785 | 1.51 | 3,110 | 5.11 | ||||||||||||||||||||||
Northern California Total | 45,878 | 88.41 | 56,913 | 93.49 | |||||||||||||||||||||
Southern California | |||||||||||||||||||||||||
Riverside | — | — | 2,140 | 3.52 | |||||||||||||||||||||
Los Angeles | 2,511 | 4.84 | 817 | 1.34 | |||||||||||||||||||||
San Diego | 1,680 | 3.24 | 95 | 0.16 | |||||||||||||||||||||
Orange | 1,354 | 2.61 | 588 | 0.97 | |||||||||||||||||||||
Ventura | 350 | 0.67 | — | — | |||||||||||||||||||||
San Bernardino | — | — | 196 | 0.32 | |||||||||||||||||||||
Kern | 117 | 0.23 | 121 | 0.2 | |||||||||||||||||||||
Southern California Total | 6,012 | 11.59 | 3,957 | 6.51 | |||||||||||||||||||||
Total Secured Loans | $ | 51,890 | 100 | % | 60,870 | 100 | % | ||||||||||||||||||
-1 | Includes Silicon Valley | ||||||||||||||||||||||||
Scheduled maturities | |||||||||||||||||||||||||
Secured loans are scheduled to mature as presented in the following table ($ in thousands). | |||||||||||||||||||||||||
Scheduled maturities at December 31, 2013 | Loans | Principal | Percent | ||||||||||||||||||||||
2014 | 6 | $ | 10,754 | 21 | % | ||||||||||||||||||||
2015 | 10 | 14,484 | 28 | ||||||||||||||||||||||
2016 | 6 | 5,450 | 10 | ||||||||||||||||||||||
2017 | 4 | 1,391 | 3 | ||||||||||||||||||||||
2018 | 2 | 585 | 1 | ||||||||||||||||||||||
Thereafter | 3 | 1,532 | 3 | ||||||||||||||||||||||
Total future maturities | 31 | 34,196 | 66 | ||||||||||||||||||||||
Matured at December 31, 2013 | 5 | 17,694 | 34 | ||||||||||||||||||||||
Total secured loans | 36 | $ | 51,890 | 100 | % | ||||||||||||||||||||
It is the partnership’s experience loans may be repaid or refinanced before, at or after the contractual maturity date. For matured loans, the partnership may continue to accept payments while pursuing collection of amounts owed from borrowers. Therefore, the above tabulation for scheduled maturities is not a forecast of future cash receipts. | |||||||||||||||||||||||||
The partnership reports maturity data based upon the most recent contractual agreement with the borrower. The table above includes two loans with an aggregate principal of $349,000 which are renewals. | |||||||||||||||||||||||||
Matured loans | |||||||||||||||||||||||||
Secured loans past maturity are summarized in the following table ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of loans (3) (4) | 5 | 14 | |||||||||||||||||||||||
Principal | $ | 17,694 | $ | 36,486 | |||||||||||||||||||||
Advances | 683 | 5,014 | |||||||||||||||||||||||
Accrued interest | 63 | 61 | |||||||||||||||||||||||
Loan balance | $ | 18,440 | $ | 41,561 | |||||||||||||||||||||
Percent of principal | 34 | % | 60 | % | |||||||||||||||||||||
-3 | The secured loans past maturity include 5 and 12 loans as of December 31, 2013 and 2012, respectively, also included in the secured loans in non-accrual status. | ||||||||||||||||||||||||
-4 | The secured loans past maturity include 5 and 10 loans as of December 31, 2013 and 2012, respectively, also included in the secured loans delinquency. | ||||||||||||||||||||||||
Delinquency | |||||||||||||||||||||||||
Secured loans summarized by payment delinquency are presented in the following table ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Past due | |||||||||||||||||||||||||
30-89 days | $ | 665 | $ | 783 | |||||||||||||||||||||
90-179 days | 17,197 | 2,062 | |||||||||||||||||||||||
180 or more days | 474 | 19,033 | |||||||||||||||||||||||
Total past due | 18,336 | 21,878 | |||||||||||||||||||||||
Current | 33,554 | 38,992 | |||||||||||||||||||||||
Total secured loans | $ | 51,890 | $ | 60,870 | |||||||||||||||||||||
At December 31, 2013, the partnership had three workout agreements in effect with an aggregate principal of $1,097,000. All three borrowers had made all required payments under the workout agreements and the loans were included in the above table as current. All three of the loans were designated impaired and were in non-accrual status. | |||||||||||||||||||||||||
At December 31, 2012, the partnership had four workout agreements in effect with an aggregate principal of $1,126,000. Of the four borrowers, three, with an aggregate principal of $709,000 had made all required payments under the workout agreements and the loans were included in the above table as current. All of the loans with a workout agreement in effect were designated impaired and three of the four impaired loans with an aggregate principal of $866,000 were in non-accrual status. | |||||||||||||||||||||||||
Interest income accrued on loans contractually past due 90 days or more as to principal or interest payments during the years ended December 31, 2013 and 2012 was $62,000 and $50,000, respectively. Accrued interest on loans contractually past due 90 days or more as to principal or interest payments at December 31, 2013 and 2012 was $81,000 and $14,000, respectively. | |||||||||||||||||||||||||
Modifications, workout agreements and troubled debt restructurings | |||||||||||||||||||||||||
Modified secured loan transactions are summarized in the following table for the years ended December 31, ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Active | Principal | Active | Principal | ||||||||||||||||||||||
Balance, January 1 | 5 | $ | 6,085 | 3 | $ | 908 | |||||||||||||||||||
New modifications | 1 | 325 | 2 | 5,225 | |||||||||||||||||||||
Paid off/Foreclosed | (1 | ) | (2,140 | ) | — | — | |||||||||||||||||||
Principal collected | — | (323 | ) | — | (48 | ) | |||||||||||||||||||
Ending, December 31 | 5 | $ | 3,947 | 5 | $ | 6,085 | |||||||||||||||||||
Workout agreements on secured loan transactions are summarized in the following table for the years ended December 31, ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Active | Principal | Active | Principal | ||||||||||||||||||||||
Balance, January 1 | 4 | $ | 1,126 | 8 | $ | 4,255 | |||||||||||||||||||
New agreements | 1 | 665 | 2 | 613 | |||||||||||||||||||||
Paid off/Foreclosed | (2 | ) | (670 | ) | — | — | |||||||||||||||||||
Expired/Voided | — | — | (6 | ) | (3,735 | ) | |||||||||||||||||||
Principal collected | — | (24 | ) | — | (7 | ) | |||||||||||||||||||
Ending, December 31 | 3 | $ | 1,097 | 4 | $ | 1,126 | |||||||||||||||||||
Modifications and workout agreements may cause a loan to qualify as a troubled debt restructuring (TDR) under GAAP, and may result in a provision for loan losses being recorded. TDRs on secured loans transactions are summarized in the following table for the years ended December 31, ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Active | Principal | Active | Principal | ||||||||||||||||||||||
Balance, January 1 | 6 | $ | 8,042 | 4 | $ | 6,625 | |||||||||||||||||||
New agreements | 2 | 990 | 2 | 3,281 | |||||||||||||||||||||
Paid off/Foreclosed | (3 | ) | (4,507 | ) | — | — | |||||||||||||||||||
Principal collected | — | (297 | ) | — | (1,864 | ) | |||||||||||||||||||
Ending, December 31 | 5 | $ | 4,228 | 6 | $ | 8,042 | |||||||||||||||||||
Provision for loan losses | $ | — | $ | — | |||||||||||||||||||||
Loans in non-accrual status | |||||||||||||||||||||||||
Secured loans in nonaccrual status are summarized in the following table ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Secured loans in nonaccrual status | |||||||||||||||||||||||||
Number of loans | 8 | 18 | |||||||||||||||||||||||
Principal | $ | 18,361 | $ | 43,352 | |||||||||||||||||||||
Advances | 688 | 5,028 | |||||||||||||||||||||||
Accrued interest | 63 | 11 | |||||||||||||||||||||||
Loan balance | $ | 19,112 | $ | 48,391 | |||||||||||||||||||||
Foregone interest | $ | 887 | $ | 3,255 | |||||||||||||||||||||
At December 31, 2013 and 2012, there was a loan with a loan balance of $425,000 and $99,000, respectively, that was contractually 90 or more days past due as to principal or interest and not in non-accrual status. | |||||||||||||||||||||||||
Loans designated impaired | |||||||||||||||||||||||||
Impaired loans had the balances shown and the associated allowance for loan losses presented in the following table ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal | $ | 21,499 | $ | 45,964 | |||||||||||||||||||||
Recorded investment(5) | $ | 22,249 | $ | 51,054 | |||||||||||||||||||||
Impaired loans without allowance | $ | 4,149 | $ | 9,611 | |||||||||||||||||||||
Impaired loans with allowance | $ | 18,100 | $ | 41,443 | |||||||||||||||||||||
Allowance for loan losses, impaired loans | $ | 8,740 | $ | 19,560 | |||||||||||||||||||||
-5 | Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. | ||||||||||||||||||||||||
Impaired loans had the average balances and interest income recognized and received in cash as presented in the following table for the years ended December 31, ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Average recorded investment | $ | 36,652 | $ | 66,898 | |||||||||||||||||||||
Interest income recognized | $ | 156 | $ | 195 | |||||||||||||||||||||
Interest income received in cash | $ | 378 | $ | 612 | |||||||||||||||||||||
NOTE 4 – LOANS (continued) | |||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||
Activity in the allowance for loan losses is presented in the following table for the years ended December 31 ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Balance, January 1 | $ | 19,815 | $ | 22,035 | |||||||||||||||||||||
Provision for loan losses | (1,040 | ) | 859 | ||||||||||||||||||||||
Charge-offs, net | |||||||||||||||||||||||||
Charge-offs | (14,623 | ) | (3,100 | ) | |||||||||||||||||||||
Recoveries | 4,638 | 21 | |||||||||||||||||||||||
Charge-offs, net | (9,985 | ) | (3,079 | ) | |||||||||||||||||||||
Balance, December 31 | $ | 8,790 | $ | 19,815 | |||||||||||||||||||||
Ratio of charge-offs, net during the period to average secured loans outstanding during the period | 17 | % | 4.32 | % | |||||||||||||||||||||
The composition of the allowance for loan losses and the percentage of unpaid principal balance for each property type are presented in the following table for the years ended December 31, ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||
Secured loans by property type | |||||||||||||||||||||||||
Single family | $ | 8,790 | 65 | % | $ | 19,255 | 76 | % | |||||||||||||||||
Multi-family | — | 2 | 60 | 4 | |||||||||||||||||||||
Commercial | — | 33 | 500 | 20 | |||||||||||||||||||||
Total for secured loans | $ | 8,790 | 100 | % | $ | 19,815 | 100 | % | |||||||||||||||||
Unsecured loans | $ | — | 100 | % | $ | — | 100 | % | |||||||||||||||||
Total allowance for loan losses | $ | 8,790 | 100 | % | $ | 19,815 | 100 | % | |||||||||||||||||
Note_5_Real_Estate_Owned_REO
Note 5 - Real Estate Owned (REO) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||||||||||||||||||
Real Estate Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||||||
NOTE 5 – REAL ESTATE OWNED (REO) | |||||||||||||||||||||||||||||||||
REO held for sale | |||||||||||||||||||||||||||||||||
Periodically, management reviews the status of the owned properties to evaluate among other things, their asset classification. Properties generally are acquired through foreclosure. Several factors are considered in determining the classification of owned properties as “real estate held for sale” or “real estate held as investment.” These factors include, but are not limited to, real estate market conditions, status of any required permits, repair, improvement or development work to be completed, rental and lease income and investment potential. Real estate owned is classified as held for sale in the period in which the GAAP required criteria are met. As a property’s status changes, reclassifications may occur. | |||||||||||||||||||||||||||||||||
Transactions and activity, including changes in the net book values, if any, and the property types are presented in the following table for the years ended December 31, ($ in thousands). | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Balance, January 1 | $ | — | $ | 48,406 | |||||||||||||||||||||||||||||
Acquisitions | 3,895 | — | |||||||||||||||||||||||||||||||
Dispositions | (7,745 | ) | (30,003 | ) | |||||||||||||||||||||||||||||
Improvements/betterments | 11 | 447 | |||||||||||||||||||||||||||||||
Designated from REO held as investment | 20,594 | — | |||||||||||||||||||||||||||||||
Designated to REO held as investment | — | (18,337 | |||||||||||||||||||||||||||||||
Change in net book value | (160 | ) | (513 | ) | |||||||||||||||||||||||||||||
Depreciation | (43 | ) | — | ||||||||||||||||||||||||||||||
Balance, December 31 | $ | 16,552 | $ | — | |||||||||||||||||||||||||||||
Property type | |||||||||||||||||||||||||||||||||
Rental | $ | 10,541 | — | ||||||||||||||||||||||||||||||
Development | 6,011 | — | |||||||||||||||||||||||||||||||
Total REO, held for sale | $ | 16,552 | — | ||||||||||||||||||||||||||||||
Number of properties, December 31 | 3 | — | |||||||||||||||||||||||||||||||
The following transactions closed during 2013, all within the fourth quarter: | |||||||||||||||||||||||||||||||||
- | Acquired through foreclosure four units in a multi-family building located in San Francisco County. All units were sold in the fourth quarter for approximately their carrying value. | ||||||||||||||||||||||||||||||||
- | Designated from REO held as investment an eight unit multi-family rental property located in San Francisco County. This property sold in December with a gain of approximately $521,000. | ||||||||||||||||||||||||||||||||
- | Designated from REO held as investment a commercial rental property located in San Francisco County. The general partners expect this property to sell in the first half of 2014. | ||||||||||||||||||||||||||||||||
- | Designated from REO held as investment the remaining three units of a tenant-in-common building located in San Francisco County, California. One unit’s sale closed in early 2014 for approximately its carrying value. | ||||||||||||||||||||||||||||||||
- | Designated from REO held as investment a six unit apartment building located in Solano County. This property sold in early 2014 for approximately its carrying value. | ||||||||||||||||||||||||||||||||
The net rental income for the two designated properties, and any other REO held for sale rental results, has been reclassified from REO – Rental Operations, to Revenues – Other for all periods presented in the financial statements and the Results of Operations in Item 7 of this report. The rental operations, net for REO held for sale properties for the years ended December 31, 2013 and 2012 was $532,000 and ($6,000), respectively. Interest expense on the mortgages securing the rental properties was $580,000 and $2,000 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||
During 2012, the partnership designated four properties to REO held as investment. Of the properties listed in the tables as dispositions in 2012, the partnership recorded an aggregate investment gain of approximately $39,000. | |||||||||||||||||||||||||||||||||
REO held for sale (continued) | |||||||||||||||||||||||||||||||||
During the fourth quarter of 2012 the partnership sold the following property. | |||||||||||||||||||||||||||||||||
– | A commercial property located in San Francisco County, California. The property was sold for its carrying value after taking into account any previously recorded valuation reserve. | ||||||||||||||||||||||||||||||||
– | A tenant-in-common unit located in San Francisco County, California. The unit had a gain on sale of approximately $4,000. | ||||||||||||||||||||||||||||||||
During the third quarter of 2012 the partnership sold a single-family residence located in Humboldt County, California. The sale resulted in a recovery of approximately $14,000 to an impairment recorded in the second quarter of 2012. | |||||||||||||||||||||||||||||||||
During the second quarter of 2012 the partnership sold the following properties. | |||||||||||||||||||||||||||||||||
– | A commercial property/development site located in San Francisco, County, California. The sale resulted in a gain of approximately $168,000. As part of the sale, the partnership took back a loan of $10,500,000 secured by the property. | ||||||||||||||||||||||||||||||||
– | A tenant-in-common unit located in San Francisco County, California. The unit had a loss on sale of approximately $127,000. | ||||||||||||||||||||||||||||||||
During the first quarter of 2012 the partnership sold the following properties. | |||||||||||||||||||||||||||||||||
– | 1 condominium unit and 3 tenants-in-common units, all located in San Francisco County, California. The units had an aggregate loss on sale of approximately $6,000. | ||||||||||||||||||||||||||||||||
– | A mixed-use property consisting of a single-family residence, winery and vineyard, located in Napa County, California. The property was sold for its carrying value after taking into account any previously recorded valuation reserve. | ||||||||||||||||||||||||||||||||
REO held as investment, net | |||||||||||||||||||||||||||||||||
For REO, held as investment, the activity in net book value (NBV) and changes in the impairment reserves are summarized in the following table for the years ended December 31 ($ in thousands). | |||||||||||||||||||||||||||||||||
NBV | Accumulated Depreciation | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Balance, January 1 | $ | 181,333 | $ | 161,402 | $ | 5,926 | $ | 3,594 | |||||||||||||||||||||||||
Acquisitions | 3,099 | 1,649 | — | — | |||||||||||||||||||||||||||||
Dispositions | (1,696 | ) | 7 | — | (7 | ) | |||||||||||||||||||||||||||
Improvements/betterments | 4,059 | 2,925 | — | — | |||||||||||||||||||||||||||||
Designated from REO held for sale | — | 18,337 | — | — | |||||||||||||||||||||||||||||
Designated to REO held for sale | (20,594 | ) | — | (411 | ) | — | |||||||||||||||||||||||||||
Changes in net book values (NBV) | (878 | ) | (648 | ) | — | — | |||||||||||||||||||||||||||
Depreciation | (2,760 | ) | (2,339 | ) | 2,760 | 2,339 | |||||||||||||||||||||||||||
Balance, December 31 | $ | 162,563 | $ | 181,333 | $ | 8,275 | $ | 5,926 | |||||||||||||||||||||||||
During 2013, the partnership’s REO held as investment transactions are summarized below. | |||||||||||||||||||||||||||||||||
- | Acquired through foreclosure a commercial office property located in Contra Costa County. The recorded investment was approximately $1,500,000. The partnership placed its interest in the title to the property in a single asset entity named San Pablo Dam Road Property Company, LLC. Upon completion of rehabilitation work, the property will be rented. | ||||||||||||||||||||||||||||||||
- | Acquired through foreclosure a multi-family complex located in Solano County. The recorded investment was approximately $1,200,000. The partnership placed its interest in the title to the property in a single asset entity named Willow Street Property Company, LLC. Rehabilitation work has been complete and the property is now being rented. | ||||||||||||||||||||||||||||||||
- | Sold a tenant-in-common unit located in San Francisco County. The unit sold for approximately its carrying value after taking into account a previously recorded valuation reserve. | ||||||||||||||||||||||||||||||||
- | Sold a portion of a land parcel located in Stanislaus County. The parcel sold for approximately its carrying value after taking into account a previously recorded valuation reserve. | ||||||||||||||||||||||||||||||||
- | Acquired through foreclosure a six unit apartment building located in Solano County. The recorded investment was approximately $399,000. The partnership placed its interest in the title to the property in a single asset entity named 515 Louisiana Property Company, LLC. | ||||||||||||||||||||||||||||||||
- | Designated three properties as REO held for sale in December 2013. | ||||||||||||||||||||||||||||||||
During the second quarter of 2012, the partnership acquired through foreclosure a partially completed home subdivision in Fresno County, California. The recorded investment was approximately $1,649,000. | |||||||||||||||||||||||||||||||||
REO, held as investment, summarized by property classification is presented in the following table ($ in thousands). | |||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Properties | NBV | Properties | NBV | ||||||||||||||||||||||||||||||
Property classification | |||||||||||||||||||||||||||||||||
Rental | 19 | $ | 141,812 | 19 | $ | 154,566 | |||||||||||||||||||||||||||
Development | 5 | 20,751 | 6 | 26,767 | |||||||||||||||||||||||||||||
Total REO, held as investment, net | 24 | $ | 162,563 | 25 | $ | 181,333 | |||||||||||||||||||||||||||
Rental properties include single-family residences (1-4 units), multi-family buildings, wholly-owned condominium complexes, fractured condominium complexes and commercial property. | |||||||||||||||||||||||||||||||||
Development properties consist of the following five properties at December 31, 2013 and five of the six properties at December 31, 2012: | |||||||||||||||||||||||||||||||||
- | A property under construction consisting of two condominium units, with a carrying value of $5,776,000 and cost to complete of approximately $300,000. | ||||||||||||||||||||||||||||||||
- | A property located in Los Angeles County, presently zoned and entitled as commercial, being developed and re-entitled to residential. | ||||||||||||||||||||||||||||||||
- | Approximately 14 and 15 acres at December 31, 2013 and 2012, respectively, located in Stanislaus County zoned commercial. | ||||||||||||||||||||||||||||||||
- | Approximately 13 acres located in Marin County, zoned for residential development. | ||||||||||||||||||||||||||||||||
- | A partially completed home subdivision located in Fresno County. The property has rental operations of five single-family residences. | ||||||||||||||||||||||||||||||||
REO, held as investment, summarized by geographic area is presented in the following table as of December 31, ($ in thousands). | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Rental | Non-Rental | Rental | Non-Rental | ||||||||||||||||||||||||||||||
County | No. | NBV | No. | NBV | No. | NBV | No. | NBV | |||||||||||||||||||||||||
San Francisco | 3 | $ | 3,915 | 1 | $ | 5,776 | 5 | $ | 17,962 | 2 | $ | 11,398 | |||||||||||||||||||||
San Francisco Bay Area(1)(2) | |||||||||||||||||||||||||||||||||
Alameda | 3 | 8,515 | — | — | 3 | 8,310 | — | — | |||||||||||||||||||||||||
Contra Costa | 4 | 13,985 | — | — | 3 | 12,651 | — | — | |||||||||||||||||||||||||
Marin | — | — | 1 | 1,209 | — | — | 1 | 1,210 | |||||||||||||||||||||||||
Napa | 1 | 1,491 | — | — | 1 | 1,592 | — | — | |||||||||||||||||||||||||
Solano | 1 | 1,149 | — | — | — | — | — | — | |||||||||||||||||||||||||
9 | 25,140 | 1 | 1,209 | 7 | 22,553 | 1 | 1,210 | ||||||||||||||||||||||||||
Northern California(1) | |||||||||||||||||||||||||||||||||
Amador | 1 | 1,551 | — | — | 1 | 1,603 | — | — | |||||||||||||||||||||||||
Fresno | — | — | 1 | 1,612 | — | — | 1 | 1,635 | |||||||||||||||||||||||||
Sacramento | 1 | 40,165 | — | — | 1 | 40,515 | — | — | |||||||||||||||||||||||||
San Joaquin | 2 | 3,235 | — | — | 2 | 2,878 | — | — | |||||||||||||||||||||||||
Stanislaus | — | — | 1 | 2,790 | — | — | 1 | 3,700 | |||||||||||||||||||||||||
Sutter | 1 | 475 | — | — | 1 | 484 | — | — | |||||||||||||||||||||||||
5 | 45,426 | 2 | 4,402 | 5 | 45,480 | 2 | 5,335 | ||||||||||||||||||||||||||
Southern California | |||||||||||||||||||||||||||||||||
Los Angeles | 2 | 67,331 | 1 | 9,364 | 2 | 68,571 | 1 | 8,824 | |||||||||||||||||||||||||
2 | 67,331 | 1 | 9,364 | 2 | 68,571 | 1 | 8,824 | ||||||||||||||||||||||||||
Total REO Held as investment | 19 | $ | 141,812 | 5 | $ | 20,751 | 19 | $ | 154,566 | 6 | $ | 26,767 | |||||||||||||||||||||
-1 | Excluding line(s) above. | ||||||||||||||||||||||||||||||||
-2 | Includes Silicon Valley | ||||||||||||||||||||||||||||||||
REO, held as investment, summarized by property type is presented in the following table as of December 31, ($ in thousands). | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Properties | NBV | Properties | NBV | ||||||||||||||||||||||||||||||
Property type | |||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||
Single family | 3 | $ | 8,879 | 4 | $ | 14,624 | |||||||||||||||||||||||||||
Apartments | 1 | 527 | 1 | 376 | |||||||||||||||||||||||||||||
Condominiums(3) | 4 | 65,014 | 4 | 68,448 | |||||||||||||||||||||||||||||
Fractured Condominiums(4) | 10 | 71,588 | 10 | 72,292 | |||||||||||||||||||||||||||||
Commercial(5) | 6 | 16,555 | 6 | 25,593 | |||||||||||||||||||||||||||||
Total REO, held as investment, net | 24 | $ | 162,563 | 25 | $ | 181,333 | |||||||||||||||||||||||||||
(3) Includes units in condominium complexes wholly-owned by the partnership. | |||||||||||||||||||||||||||||||||
(4) Includes units in condominium complexes where some units had been sold prior to the partnership’s acquisition. | |||||||||||||||||||||||||||||||||
(5) Includes two parcels of land of 14 and 13 acres respectively. | |||||||||||||||||||||||||||||||||
The earnings/(loss) from rental operations of the real estate owned, held as investment is presented in the following table for the years ended December 31 ($ in thousands). | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Rental income | $ | 11,125 | $ | 11,557 | |||||||||||||||||||||||||||||
Operating expenses, rentals | |||||||||||||||||||||||||||||||||
Administration and payroll | 1,394 | 1,431 | |||||||||||||||||||||||||||||||
Homeowner association fees | 857 | 865 | |||||||||||||||||||||||||||||||
Professional services | 275 | 296 | |||||||||||||||||||||||||||||||
Utilities and maintenance | 1,223 | 1,238 | |||||||||||||||||||||||||||||||
Advertising and promotions | 136 | 128 | |||||||||||||||||||||||||||||||
Property taxes | 1,171 | 1,849 | |||||||||||||||||||||||||||||||
Other | 225 | 280 | |||||||||||||||||||||||||||||||
Total operating expenses, rentals | 5,281 | 6,087 | |||||||||||||||||||||||||||||||
Net operating income | 5,844 | 5,470 | |||||||||||||||||||||||||||||||
Depreciation | 2,597 | 2,328 | |||||||||||||||||||||||||||||||
Receiver fees | 60 | 239 | |||||||||||||||||||||||||||||||
Rental operations, net | 3,187 | 2,903 | |||||||||||||||||||||||||||||||
Interest on mortgages | 1,683 | 2,395 | |||||||||||||||||||||||||||||||
Rental operation, net, less related mortgage interest | $ | 1,504 | $ | 508 | |||||||||||||||||||||||||||||
Leases on residential properties are all one year lease terms or month to month. One commercial property has a short term lease, due to the cancellation clause at lessee's option. |
Note_6_Borrowings
Note 6 - Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
NOTE 6 – BORROWINGS | |||||||||
Mortgages payable | |||||||||
Mortgages payable transactions are summarized in the following table for the years ended December 31, ($ in thousands). | |||||||||
2013 | 2012 | ||||||||
Principal, January 1 | $ | 47,293 | $ | 43,681 | |||||
New mortgages taken | 5,000 | 5,160 | |||||||
Principal repaid | (3,355 | ) | (1,548 | ) | |||||
Principal, December 31 | $ | 48,938 | $ | 47,293 | |||||
Mortgages payable (continued) | |||||||||
Mortgages payable are summarized in the following table as of December 31, (mortgage balance $ in thousands). | |||||||||
Lender – summary of terms | 2013 | 2012 | |||||||
NorthMarq Capital – Secured by a condominium complex, located in Los Angeles County, matures July 1, 2015, interest rate (2.90%) varies monthly (LIBOR plus 2.73%), monthly payment(1)(2) $119,758 | $ | 18,170 | $ | 18,607 | |||||
East West Bank – Secured by a fractured condominium project located in Sacramento County, matures June 1, 2017, interest rate varies monthly (greater of Prime plus 1% or 5.50%), monthly payment(2) $78,283 | 13,391 | 13,578 | |||||||
Business Partners – Secured by a commercial property located in San Francisco County, matures May 1, 2015, interest rate varies monthly (greater of 5-year Treasuries plus 2.33% or 6.53%), monthly payment(1)(2) $79,155 | 6,721 | 7,100 | |||||||
Chase Bank – Secured by a condominium complex located in Contra Costa County, matures September 1, 2042, interest rate variable (fixed until September 1, 2017 at 3.52%), monthly payment $23,228 | 5,036 | 5,136 | |||||||
CapitalSource – Secured by a condominium complex, located in Los Angeles County, matures July 1, 2023, interest rate variable (fixed until June 1, 2016 at 3.95%), monthly payment(1)(2) $42,258 | 4,952 | — | |||||||
First National Bank of Northern California – Secured by eight condominium units located in San Francisco County, matures November 1, 2016, interest rate varies monthly (greater of Prime plus 2.35% or 5.70%), monthly payment(2) $12,856 | — | 2,179 | |||||||
Wells Fargo Bank – Secured by a condominium unit located in San Francisco County, matures October 1, 2032, interest rate (2.88%) varies annually (LIBOR plus 2.75%), monthly payment $2,014 | 351 | 365 | |||||||
Wells Fargo Bank – Secured by a condominium unit located in San Francisco County, matures September 15, 2032, interest rate (4.03%) varies annually (bank rate plus 3.10%), monthly payment $2,174 | 317 | 328 | |||||||
Total mortgages payable | $ | 48,938 | $ | 47,293 | |||||
(1) Monthly payments include amounts for various impounds such as property taxes, insurance, and repairs. | |||||||||
(2) Monthly payments based upon a 30 year amortization, with a balloon payment due at maturity. | |||||||||
During 2013, significant transactions to mortgages payable were as follows. | |||||||||
– | In June 2013, the partnership obtained a mortgage loan of $5,000,000 from CapitalSource, secured by the multi-family complex held by Altura Property Company, LLC. | ||||||||
– | In December 2013, the mortgage held by First National Bank of Northern California was paid in full upon the sale of the eight condominium units securing the loan. | ||||||||
During 2012, significant transactions to mortgages payable were as follows. | |||||||||
– | In June 2012 the partnership and East West bank finalized negotiations and executed a loan agreement to succeed the maturing note. The maturing loan had a balance of $13,681,000, an interest rate of 7.50% and matured on May 5, 2012. | ||||||||
– | In August 2012, the partnership obtained a mortgage loan of $5,160,000 from Chase Bank, secured by the multi-family complex held by Diablo Villas, LLC. | ||||||||
– | In August 2012, the partnership sold a non-rental property secured by a mortgage of $107,000. The interest expense incurred for 2012 was approximately $3,000. | ||||||||
– | The Chase Bank and GMAC mortgages shown in the above table with zero balances at December 31, 2012, were paid off in full when the properties securing the loans were sold during 2012. | ||||||||
The future minimum payments of principal on the above mortgages at December 31, 2013 are presented in the following table ($ in thousands). | |||||||||
2014 | $ | 1,326 | |||||||
2015 | 24,506 | ||||||||
2016 | 503 | ||||||||
2017 | 13,012 | ||||||||
2018 | 292 | ||||||||
Thereafter | 9,299 | ||||||||
Total | $ | 48,938 | |||||||
Bank loan, secured | |||||||||
In September 2012, the partnership paid all remaining amounts owing under the Bank Loan. The Bank Loan balance was $16,789,000, at December 31, 2011. |
Note_7_Fair_Value
Note 7 - Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
NOTE 7 – FAIR VALUE | |||||||||||||||||
The partnership does not record loans, REO, nor mortgages payable at fair value on a recurring basis. | |||||||||||||||||
Certain assets and liabilities are measured at fair value on a non-recurring basis. | |||||||||||||||||
- Loans designated impaired (i.e. that are collateral dependent). | |||||||||||||||||
- REO held for sale. | |||||||||||||||||
- REO held as investment. | |||||||||||||||||
- Loans designated impaired which were acquired through foreclosure or deed in lieu of foreclosure during the year. | |||||||||||||||||
- Loans designated impaired which were acquired through foreclosure or deed in lieu of foreclosure and sold during the year. | |||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2013 are presented in the following table ($ in thousands). | |||||||||||||||||
Fair Value Measurement at Report Date Using | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | Total | ||||||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||||||
Item | (Level 1) | (Level 2) | (Level 3) | 12/31/13 | |||||||||||||
Impaired loans with allowance, net(1) | $ | — | $ | 9,360 | $ | — | $ | 9,360 | |||||||||
REO held for sale | $ | — | $ | 16,552 | $ | — | $ | 16,552 | |||||||||
REO held as investment(2) | $ | — | $ | 4,868 | $ | 1,551 | $ | 6,419 | |||||||||
Impaired loans with allowance, net foreclosed upon during 2013(1)(3) | $ | — | $ | 2,662 | $ | — | $ | 2,662 | |||||||||
Impaired loans with allowance, net foreclosed and sold during 2013(1) | $ | — | $ | 3,895 | $ | — | $ | 3,895 | |||||||||
Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2012 are presented in the following table ($ in thousands). | |||||||||||||||||
Fair Value Measurement at Report Date Using | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | Total | ||||||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||||||
Item | (Level 1) | (Level 2) | (Level 3) | 12/31/12 | |||||||||||||
Impaired loans with allowance, net(1) | $ | — | $ | 21,883 | $ | — | $ | 21,883 | |||||||||
REO held for sale | $ | — | $ | — | $ | — | $ | — | |||||||||
REO held as investment(2) | $ | — | $ | 12,022 | $ | 1,603 | $ | 13,625 | |||||||||
Impaired loans with allowance, net foreclosed upon during 2012(1)(3) | $ | — | $ | 1,634 | $ | — | $ | 1,634 | |||||||||
Impaired loans with allowance, net foreclosed and sold during 2012(1) | $ | — | $ | — | $ | — | $ | — | |||||||||
-1 | Sum of principal, advances, interest accrued, less the related specific allowance for financial reporting purposes. | ||||||||||||||||
-2 | Only includes properties with a valuation change during the year. | ||||||||||||||||
-3 | Excludes any properties included in the REO lines above. | ||||||||||||||||
In 2012, in line with improving volumes of transactions and fewer distressed sales it was determined that sufficient market transactions were occurring to reclassify impaired loans with allowance, net to Level 2 from Level 3. | |||||||||||||||||
Amounts shown as level 3 in 2012 for REO held as investment have been reclassified to level 2 in light of the improved real estate markets in 2012 which have continued to improve during 2013. | |||||||||||||||||
The following methods and assumptions are used when estimating fair value. | |||||||||||||||||
(a) | Secured loans (Level 2) - The recorded amount of the performing loans (i.e. the loan balance) is deemed to approximate the fair value. Each loan is reviewed for its delinquency, protective equity (LTV) adjusted for the most recent valuation of the underlying collateral, remaining term to maturity, borrower’s payment history and other factors. Also considered is the very limited resale market for the loans. Most companies or individuals making similar loans as the partnership intend to hold the loans until maturity as the average contractual term of the loans (and the historical experience of the time the loan is outstanding due to pre-payments) is shorter than conventional mortgages. Further there are no prepayment penalties to be collected and any loan buyers would be unwilling to risk paying above par. Due to these factors sales of the loans are infrequent and an active market does not exist. | ||||||||||||||||
(b) | Secured loans (Level 2) – designated impaired are deemed collateral dependent, and the fair value of the loan is the lesser of the fair value of the collateral or the enforceable amount owing under the note. The fair value of the collateral is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions Level 2 inputs. | ||||||||||||||||
The following methods are used depending upon the property type of the collateral. | |||||||||||||||||
Single family – Management’s preferred method for determining the fair market value of its single-family residential assets is the sale comparison method. Management primarily obtains sale comps via its subscription to the RealQuest service, but also uses free online services such as Zillow.com and other available resources to supplement this data. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, number of bedrooms and bathrooms, square footage, sale date, condition, and year built. | |||||||||||||||||
Where sufficient, applicable sale comps are not available, management will seek additional information in the form of broker’s opinions of value or appraisals. | |||||||||||||||||
Multi-family residential - The company’s multifamily residential assets consist of either multiple owned units at fractured condominium projects and wholly owned apartment complexes with condominium overlays, management’s fair market value analysis compares the aggregate retail value of the units as for-sale condominiums against the asset’s value as an income-producing rental property in determining its most favorable market. | |||||||||||||||||
Management’s preferred method for determining the aggregate retail value of its multifamily units is the sale comparison method for the individual condominium units. Management primarily obtains sale comps via its subscription to the RealQuest service, but also uses free online services such as Zillow.com to supplement this data. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, number of bedrooms and bathrooms, square footage, sale date, condition, amenities and year built. For fractured condominium projects, sales of units within the same community are preferred. | |||||||||||||||||
Management compiles the list of the most relevant sale comps and derives an average price per square foot, which is then applied to the average square footage of company-owned units at the subject property to determine the average price per unit and the gross square footage of all company units to determine the aggregate retail value of the units as for-sale condominiums. | |||||||||||||||||
Where adequate sale comps are not available, management will seek additional information in the form of broker’s opinions of value or appraisals. | |||||||||||||||||
Management’s preferred method for valuing its multifamily assets as income-producing rental operations is the direct capitalization method when rental operations are consistent and rental income and expenses have been normalized. In order to determine market cap rates, management refers to published data from reliable third-party sources such as the CBRE Cap Rate Survey. Management then applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing project. When reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value. | |||||||||||||||||
Where such information is available, management may also determine the asset’s value as an income-producing rental project via the sale comparison method by comparing the value of similar multifamily assets sold recently. This method typically applies only to wholly owned apartment complexes. | |||||||||||||||||
Management compares the aggregate retail value to the value as an income-producing rental project to determine the property’s current highest and best use/ most favorable market, setting the fair market value accordingly. | |||||||||||||||||
Commercial buildings - Where commercial rental income information is available, management’s preferred method for determining the fair value of its commercial real estate assets is the direct capitalization method. In order to determine market cap rates for properties of the same class and location as the subject, management refers to reputable third-party sources such as the CBRE Cap Rate Survey. Management then applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing commercial rental project. When reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value of stabilized properties performing at market, less any cost to improve. | |||||||||||||||||
Supplemental, and particularly when reliable net operating income is not available or the project is under development, management will seek additional information in the form of a sale comparison analysis (where adequate sale comps are available), broker’s opinion of value, or appraisal. | |||||||||||||||||
Commercial land – Commercial land has many variations/uses, thus requiring management to employ a variety of methods depending upon the unique characteristics of the subject land. | |||||||||||||||||
(c) | Unsecured loans (Level 3). Unsecured loans are valued at their principal less any discount or loss reserves established by management after taking into account the borrower’s creditworthiness and ability to repay the loan. | ||||||||||||||||
(d) | Real estate owned (REO), net (Level 2). Real estate acquired in full or partial settlement of loan obligations, generally through foreclosure, is recorded at acquisition at the lower of the recorded investment in the loan, plus any senior indebtedness, or at the property’s fair value less estimated costs to sell, as applicable. The fair value estimates are derived as above in secured loans for similar property types. In rare instances where no market comps are available, the fair value of the property will be computed using internal analytics that are expected to be indicative of the value that would be ascribed by a buyer/investor. | ||||||||||||||||
(e) | Mortgages payable (Level 2). The partnership has mortgages payable (see Note 6 Borrowings for details). The interest rates are deemed to be at market rates for the type and location of the securing property, the length of the mortgage, and the other terms and conditions are deemed to be customary. All of the partnership’s mortgages are deemed to be at fair value as they are either, with variable interest rates which have adjusted within the past twelve months, or were refinanced/extended within the past twelve months with terms and conditions deemed customary for the collateral property. | ||||||||||||||||
Note_8_Commitments_and_Conting
Note 8 - Commitments and Contingencies, Other Than Loan and REO Commitments | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE 8 – COMMITMENTS AND CONTINGENCIES, OTHER THAN LOAN COMMITMENTS | |
Legal proceedings | |
In the normal course of business, the partnership may become involved in various legal proceedings such as assignment of rents, bankruptcy proceedings, appointment of receivers, unlawful detainers, judicial foreclosure, etc., to enforce the provisions of the deeds of trust, collect the debt owed under the promissory notes, or to protect, or recoup its investment from the real property secured by the deeds of trust and to resolve disputes between borrowers, lenders, lien holders and mechanics. None of these actions typically would be of any material importance. As of the date hereof, the partnership is not involved in any legal proceedings other than those that would be considered part of the normal course of business. | |
Commitments | |
At December 31, 2013, there was one property with a carrying value of $5,776,000 in construction with remaining construction costs of approximately $300,000. |
Note_9_Subsequent_Events
Note 9 - Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 9 – SUBSEQUENT EVENTS | |
None |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Accounting, Policy [Policy Text Block] | ' | ||
Basis of presentation | |||
The partnership’s consolidated financial statements include the accounts of the partnership, its wholly-owned subsidiaries, and its 72.5%-owned subsidiary. All significant intercompany transactions and balances have been eliminated in consolidation. | |||
Reclassification, Policy [Policy Text Block] | ' | ||
Reclassifications | |||
Certain reclassifications, not affecting previously reported net income or total partner capital, have been made to the previously issued consolidated financial statements to conform to the current year presentation. | |||
Use of Estimates, Policy [Policy Text Block] | ' | ||
Management estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates relate principally to the determination of the allowance for loan losses, including, when applicable, the valuation of impaired loans, (which itself requires determining the fair value of the collateral), and the valuation of real estate held for sale and held as investment, at acquisition and subsequently. Actual results could differ significantly from these estimates. | |||
GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. | |||
Fair values of assets and liabilities are determined based on the fair value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used. | |||
- | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | ||
- | Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. | ||
- | Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the company’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the company’s own data. | ||
Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the fair value of the collateral, net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. This computation is done for each loan (whether impaired or performing), and while loans secured by collateral of similar property type are grouped, there is enough distinction and variation in the collateral that a loan-by-loan, collateral-by-collateral analysis is appropriate. | |||
The fair value of the collateral is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. In some years (notably 2009, 2010 and to a lesser extent 2011 and 2012) due to low levels of real estate transactions, and an increased number of transactions that were distressed (i.e., executed by an unwilling seller – often compelled by lenders or other claimants – and/or executed without broad exposure or with market exposure but with few, if any, resulting offers), more interpretation, judgment and interpolation/extrapolation within and across property types was required. | |||
Appraisals of commercial real property generally present three approaches to estimating value: 1) market comparables or sales approach; 2) cost to replace and 3) capitalized cash flows or investment approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g. as-is, when-completed, or for land when-entitled); and determining the unit of value (e.g. as a series of individual unit sales or as a bulk disposition). In some prior years, as has been previously noted, the appraisal process, was further complicated by the low transaction volumes of which a very high percentage were considered to be distressed sales, and other poor market conditions. | |||
Management has the requisite familiarity with the markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value, and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types. | |||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||
Cash and cash equivalents | |||
The partnership considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. Periodically, partnership cash balances in banks exceed federally insured limits. | |||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | ' | ||
Loans and interest income | |||
Loans generally are stated at the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the partnership’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums, and attorney fees. Advances generally are stated at the unpaid principal balance and accrue interest until repaid by the borrower. | |||
The partnership may fund a specific loan origination net of an interest reserve to insure timely interest payments at the inception (one to two years) of the loan. As monthly interest payments become due, the partnership funds the payments into the affiliated trust account. | |||
If based upon current information and events, it is probable the partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement, then a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. If a valuation allowance had been established on an impaired loan, any subsequent payments on impaired loans are applied to late fees and then to reduce first the accrued interest, then advances, and then unpaid principal. | |||
From time to time, the partnership negotiates and enters into loan modifications with borrowers whose loans are delinquent. If the loan modification results in a significant reduction in the cash flow compared to the original note, the modification is deemed a troubled debt restructuring and a loss is recognized. In the normal course of the partnership’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the matured loan was previously designated as impaired. | |||
Interest is accrued daily based on the unpaid principal balance of the loans. An impaired loan continues to accrue as long as the loan is in the process of collection and is considered to be well-secured. Loans are placed on non-accrual status at the earlier of management’s determination that the primary source of repayment will come from the foreclosure and subsequent sale of the collateral securing the loan (which usually occurs when a notice of sale is filed) or when the loan is no longer considered well-secured. When a loan is placed on non-accrual status, the accrual of interest is discontinued; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent interest and principal payments become current in accordance with the terms of the loan agreement. | |||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' | ||
Allowance for loan losses | |||
Loans and the related accrued interest and advances are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Delinquencies are determined based upon contractual terms. For impaired loans, a provision is made for loan losses to adjust the allowance for loan losses to an amount considered by management to be adequate, with due consideration to collateral values, such that the net carrying amount (unpaid principal balance, plus advances, plus accrued interest less the specific allowance) is reduced to the present value of future cash flows discounted at the loan’s effective interest rate, or, if a loan is collateral dependent, to the estimated fair value of the related collateral, net of any senior loans, and net of any costs to sell in arriving at net realizable value if planned disposition of the asset securing a loan is by way of sale. | |||
The fair value estimates are derived from information available in the real estate markets including similar property, and may require the experience and judgment of third parties such as commercial real estate appraisers and brokers. | |||
Loans determined not to be individually impaired are grouped by the property type of the underlying collateral, and for each loan and for the total by property type, the amount of protective equity or amount of exposure to loss (i.e., the dollar amount of the deficiency of the fair value of the underlying collateral to the loan balance) is computed. | |||
Based on its knowledge of the borrowers and their historical (and expected) performance, and the exposure to loss as indicated in the analysis, management estimates an appropriate reserve by property type for probable credit losses in the portfolio. Because the partnership is an asset-based lender, except as to owner-occupied residences, and because specific regions, neighborhoods and even properties within the same neighborhoods, vary significantly as to real estate values and transaction activity, general market trends, which may be indicative of a change in the risk of a loss, and a borrower’s credit worthiness are secondary to the condition of the property, the property type and the neighborhood/region in which the property is located, and do not enter substantially into the determination of the amount of the non-specific (i.e. general) reserves. | |||
The partnership charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. | |||
Real Estate Held for Development and Sale, Policy [Policy Text Block] | ' | ||
Real estate owned (REO) held for sale | |||
REO, held for sale includes real estate acquired in full or partial settlement of loan obligations generally through foreclosure that is being marketed for sale. REO, held for sale is recorded at acquisition at the lower of the recorded investment in the loan, plus any senior indebtedness, or at the property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. Any excess of the recorded investment in the loan over the net realizable value is charged against the allowance for loan losses. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, REO, held for sale is analyzed periodically for changes in fair values and any subsequent write down is charged to operating expenses. Any recovery in the fair value subsequent to such a write down is recorded – not to exceed the net realizable value at acquisition – as an offset to operating expenses. Gains or losses on sale of the property are included in REO - operating expense in the consolidated statements of operations. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. | |||
Real Estate, Policy [Policy Text Block] | ' | ||
Real estate owned (REO), held as investment, net | |||
REO, held as investment, net includes real estate acquired in full or partial settlement of loan obligations generally through foreclosure that is not being marketed for sale and is either being operated, such as rental properties; is being managed through the development process, including obtaining appropriate and necessary entitlements, permits and construction; or are idle properties awaiting more favorable market conditions. REO, held as investment, net is recorded at acquisition at the lower of the recorded investment in the loan, plus any senior indebtedness, or at the property’s estimated fair value, net. After acquisition, costs incurred relating to the development and improvement of the property are capitalized, whereas costs relating to operating or holding the property are expensed. Subsequent to acquisition, management periodically compares the carrying value of real estate to expected undiscounted future cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds future undiscounted cash flows, the assets are reduced to estimated fair value. | |||
Rental Income [Policy Text Block] | ' | ||
Rental income | |||
Rental income is recognized when earned in accordance with the lease agreement. For commercial leases, the costs associated with originating the lease are amortized over the lease term. Residential lease terms generally range from month-to-month to one year, and the expenses of originating the lease are expensed as incurred. | |||
Depreciation, Depletion, and Amortization [Policy Text Block] | ' | ||
Depreciation | |||
Real estate owned held as investment that is being operated is depreciated on a straight-line basis over the estimated useful life of the property once the asset is placed in service. | |||
Net Income per $1,000 Invested [Policy Text Block] | ' | ||
Net income per $1,000 invested | |||
Amounts reflected in the statements of operations as net income per $1,000 invested by limited partners for the entire period are amounts allocated to limited partners who held their investment throughout the period and have elected to either leave their profits to compound or have elected to receive periodic distributions of their net income. Individual income is allocated each month based on the limited partners’ pro rata share of partners’ capital. Because the net income percentage varies from month to month, amounts per $1,000 will vary for those individuals who made or withdrew investments during the period, or selected other options. |
Note_1_Organizational_and_Gene1
Note 1 - Organizational and General (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Reconciliation of Partners Capital [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Partners’ capital per consolidated financial statements | 193,212 | 195,056 | |||||||
Unallocated syndication costs | — | 321 | |||||||
Allowance for loan losses | 8,790 | 19,815 | |||||||
Book vs. tax basis-real estate owned | (15,475 | ) | (11,721 | ) | |||||
Formation loans receivable | 7,627 | 7,627 | |||||||
Partners’ capital - tax basis | 194,154 | 211,098 |
Note_3_General_Partners_and_Ot1
Note 3 - General Partners and Other Related Parties (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||||||||||||||||||
Initial Offering of $15,000 | 1996 Offering of $30,000 | 2000 Offering of $30,000 | 2002 Offering of $50,000 | 2003 Offering of $75,000 | 2005 Offering of $100,000 | Total | |||||||||||||||||||||||
Limited Partner contributions | $ | 14,932 | $ | 29,993 | $ | 29,999 | $ | 49,985 | $ | 74,904 | $ | 100,000 | $ | 299,813 | |||||||||||||||
Formation Loan | $ | 1,075 | $ | 2,272 | $ | 2,218 | $ | 3,777 | $ | 5,661 | $ | 7,564 | $ | 22,567 | |||||||||||||||
Unamortized discount on Formation loan | — | — | (23 | ) | (80 | ) | (414 | ) | (1,317 | ) | (1,834 | ) | |||||||||||||||||
Formation Loan, net | 1,075 | 2,272 | 2,195 | 3,697 | 5,247 | 6,247 | 20,733 | ||||||||||||||||||||||
Repayments | (991 | ) | (2,099 | ) | (1,883 | ) | (2,948 | ) | (3,414 | ) | (2,962 | ) | (14,297 | ) | |||||||||||||||
Early withdrawal penalties | (84 | ) | (173 | ) | (137 | ) | (100 | ) | (142 | ) | (7 | ) | (643 | ) | |||||||||||||||
Formation Loan, net at December 31, 2013 | — | — | 175 | 649 | 1,691 | 3,278 | 5,793 | ||||||||||||||||||||||
Unamortized discount on Formation loan | — | — | 23 | 80 | 414 | 1,317 | 1,834 | ||||||||||||||||||||||
Balance, December 31, 2013 | $ | — | $ | — | $ | 198 | $ | 729 | $ | 2,105 | $ | 4,595 | $ | 7,627 | |||||||||||||||
Percent loaned | 7.2 | % | 7.6 | % | 7.4 | % | 7.6 | % | 7.6 | % | 7.6 | % | 7.5 | % | |||||||||||||||
Schedule of Financing Receivables, Minimum Payments [Table Text Block] | ' | ||||||||||||||||||||||||||||
2014 | $ | — | |||||||||||||||||||||||||||
2015 | 1,898 | ||||||||||||||||||||||||||||
2016 | 1,674 | ||||||||||||||||||||||||||||
2017 | 1,323 | ||||||||||||||||||||||||||||
2018 | 1,163 | ||||||||||||||||||||||||||||
Thereafter | 1,569 | ||||||||||||||||||||||||||||
Total | $ | 7,627 | |||||||||||||||||||||||||||
Mortgage Servicing Fee Activities [Table Text Block] | ' | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Chargeable by RMC | $ | 884 | $ | 1,083 | |||||||||||||||||||||||||
Waived by RMC | (295 | ) | (361 | ) | |||||||||||||||||||||||||
Charged | $ | 589 | $ | 722 | |||||||||||||||||||||||||
Distribution Of Syndication Costs [Table Text Block] | ' | ||||||||||||||||||||||||||||
Costs incurred | $ | 5,010 | |||||||||||||||||||||||||||
Early withdrawal penalties applied | (190 | ) | |||||||||||||||||||||||||||
Allocated to date | (4,820 | ) | |||||||||||||||||||||||||||
December 31, 2013 balance | $ | — |
Note_4_Loans_Tables
Note 4 - Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Secured Loan Principal Transactions [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal, January 1 | $ | 60,870 | $ | 73,386 | |||||||||||||||||||||
Loans funded or acquired | 22,285 | 10,522 | |||||||||||||||||||||||
Principal collected | (9,931 | ) | (17,401 | ) | |||||||||||||||||||||
Loans sold to affiliates | (2,107 | ) | (1,189 | ) | |||||||||||||||||||||
Foreclosures | (18,975 | ) | (3,728 | ) | |||||||||||||||||||||
Other – loans charged off against allowance | (252 | ) | (720 | ) | |||||||||||||||||||||
Principal, December 31 | $ | 51,890 | $ | 60,870 | |||||||||||||||||||||
Secured Loans Characteristics [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of secured loans | 36 | 39 | |||||||||||||||||||||||
Secured loans – principal | $ | 51,890 | $ | 60,870 | |||||||||||||||||||||
Secured loans – lowest interest rate (fixed) | 4 | % | 3 | % | |||||||||||||||||||||
Secured loans – highest interest rate (fixed) | 12 | % | 12 | % | |||||||||||||||||||||
Average secured loan – principal | $ | 1,441 | $ | 1,561 | |||||||||||||||||||||
Average principal as percent of total principal | 2.78 | % | 2.56 | % | |||||||||||||||||||||
Average principal as percent of partners’ capital | 0.75 | % | 0.8 | % | |||||||||||||||||||||
Average principal as percent of total assets | 0.59 | % | 0.63 | % | |||||||||||||||||||||
Largest secured loan – principal | $ | 16,312 | $ | 16,697 | |||||||||||||||||||||
Largest principal as percent of total principal | 31.44 | % | 27.43 | % | |||||||||||||||||||||
Largest principal as percent of partners’ capital | 8.44 | % | 8.56 | % | |||||||||||||||||||||
Largest principal as percent of total assets | 6.65 | % | 6.74 | % | |||||||||||||||||||||
Smallest secured loan – principal | $ | 79 | $ | 87 | |||||||||||||||||||||
Smallest principal as percent of total principal | 0.15 | % | 0.14 | % | |||||||||||||||||||||
Smallest principal as percent of partners’ capital | 0.04 | % | 0.04 | % | |||||||||||||||||||||
Smallest principal as percent of total assets | 0.03 | % | 0.04 | % | |||||||||||||||||||||
Number of counties where security is located (all California) | 17 | 19 | |||||||||||||||||||||||
Largest percentage of principal in one county | 41.68 | % | 46.18 | % | |||||||||||||||||||||
Number of secured loans in foreclosure status | 2 | 6 | |||||||||||||||||||||||
Secured loans in foreclosure – principal | $ | 16,689 | $ | 1,910 | |||||||||||||||||||||
Number of secured loans with an interest reserve | — | — | |||||||||||||||||||||||
Interest reserves | $ | — | $ | — | |||||||||||||||||||||
Secured Loans by Lien Position in the Collateral [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
First trust deeds | 19 | $ | 36,816 | 71 | % | 17 | $ | 33,785 | 56 | % | |||||||||||||||
Second trust deeds | 16 | 14,784 | 28 | 21 | 26,789 | 44 | |||||||||||||||||||
Third trust deeds | 1 | 290 | 1 | 1 | 296 | — | |||||||||||||||||||
Total secured loans | 36 | 51,890 | 100 | % | 39 | 60,870 | 100 | % | |||||||||||||||||
Liens due other lenders at loan closing | 53,098 | 80,875 | |||||||||||||||||||||||
Total debt | $ | 104,988 | $ | 141,745 | |||||||||||||||||||||
Appraised property value at loan closing | $ | 148,215 | $ | 199,392 | |||||||||||||||||||||
Percent of total debt to appraised values (LTV) at loan closing (1) | 70.83 | % | 71.1 | % | |||||||||||||||||||||
Secured Loans by Property Type of the Collateral [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
Single family | 27 | $ | 33,771 | 65 | % | 31 | $ | 46,295 | 76 | % | |||||||||||||||
Multi-family | 1 | 1,000 | 2 | 2 | 2,557 | 4 | |||||||||||||||||||
Commercial(2) | 8 | 17,119 | 33 | 6 | 12,018 | 20 | |||||||||||||||||||
Total secured loans | 36 | $ | 51,890 | 100 | % | 39 | $ | 60,870 | 100 | % | |||||||||||||||
Secured Loans Distributed within California [Table Text Block] | ' | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Unpaid Principal Balance | Percent | Unpaid Principal Balance | Percent | ||||||||||||||||||||||
San Francisco | $ | 21,627 | 41.68 | % | $ | 28,115 | 46.18 | % | |||||||||||||||||
San Francisco Bay Area(1) | |||||||||||||||||||||||||
Contra Costa | 16,647 | 32.08 | 17,927 | 29.44 | |||||||||||||||||||||
Santa Clara | 3,208 | 6.18 | 3,182 | 5.23 | |||||||||||||||||||||
San Mateo | 1,765 | 3.4 | 665 | 1.09 | |||||||||||||||||||||
Alameda | 1,260 | 2.43 | 1,682 | 2.76 | |||||||||||||||||||||
Solano | — | — | 1,641 | 2.7 | |||||||||||||||||||||
Napa | 406 | 0.78 | 411 | 0.68 | |||||||||||||||||||||
Marin | 180 | 0.35 | 180 | 0.3 | |||||||||||||||||||||
23,466 | 45.22 | 25,688 | 42.2 | ||||||||||||||||||||||
Other Northern California | |||||||||||||||||||||||||
Sacramento | 249 | 0.48 | 2,518 | 4.14 | |||||||||||||||||||||
Calaveras | 182 | 0.35 | 196 | 0.32 | |||||||||||||||||||||
Monterey | 178 | 0.34 | 183 | 0.3 | |||||||||||||||||||||
San Benito | 97 | 0.19 | 98 | 0.16 | |||||||||||||||||||||
Butte | 79 | 0.15 | 115 | 0.19 | |||||||||||||||||||||
785 | 1.51 | 3,110 | 5.11 | ||||||||||||||||||||||
Northern California Total | 45,878 | 88.41 | 56,913 | 93.49 | |||||||||||||||||||||
Southern California | |||||||||||||||||||||||||
Riverside | — | — | 2,140 | 3.52 | |||||||||||||||||||||
Los Angeles | 2,511 | 4.84 | 817 | 1.34 | |||||||||||||||||||||
San Diego | 1,680 | 3.24 | 95 | 0.16 | |||||||||||||||||||||
Orange | 1,354 | 2.61 | 588 | 0.97 | |||||||||||||||||||||
Ventura | 350 | 0.67 | — | — | |||||||||||||||||||||
San Bernardino | — | — | 196 | 0.32 | |||||||||||||||||||||
Kern | 117 | 0.23 | 121 | 0.2 | |||||||||||||||||||||
Southern California Total | 6,012 | 11.59 | 3,957 | 6.51 | |||||||||||||||||||||
Total Secured Loans | $ | 51,890 | 100 | % | 60,870 | 100 | % | ||||||||||||||||||
Secured Loans Scheduled Maturities [Table Text Block] | ' | ||||||||||||||||||||||||
Scheduled maturities at December 31, 2013 | Loans | Principal | Percent | ||||||||||||||||||||||
2014 | 6 | $ | 10,754 | 21 | % | ||||||||||||||||||||
2015 | 10 | 14,484 | 28 | ||||||||||||||||||||||
2016 | 6 | 5,450 | 10 | ||||||||||||||||||||||
2017 | 4 | 1,391 | 3 | ||||||||||||||||||||||
2018 | 2 | 585 | 1 | ||||||||||||||||||||||
Thereafter | 3 | 1,532 | 3 | ||||||||||||||||||||||
Total future maturities | 31 | 34,196 | 66 | ||||||||||||||||||||||
Matured at December 31, 2013 | 5 | 17,694 | 34 | ||||||||||||||||||||||
Total secured loans | 36 | $ | 51,890 | 100 | % | ||||||||||||||||||||
Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Active | Principal | Active | Principal | ||||||||||||||||||||||
Balance, January 1 | 5 | $ | 6,085 | 3 | $ | 908 | |||||||||||||||||||
New modifications | 1 | 325 | 2 | 5,225 | |||||||||||||||||||||
Paid off/Foreclosed | (1 | ) | (2,140 | ) | — | — | |||||||||||||||||||
Principal collected | — | (323 | ) | — | (48 | ) | |||||||||||||||||||
Ending, December 31 | 5 | $ | 3,947 | 5 | $ | 6,085 | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Active | Principal | Active | Principal | ||||||||||||||||||||||
Balance, January 1 | 4 | $ | 1,126 | 8 | $ | 4,255 | |||||||||||||||||||
New agreements | 1 | 665 | 2 | 613 | |||||||||||||||||||||
Paid off/Foreclosed | (2 | ) | (670 | ) | — | — | |||||||||||||||||||
Expired/Voided | — | — | (6 | ) | (3,735 | ) | |||||||||||||||||||
Principal collected | — | (24 | ) | — | (7 | ) | |||||||||||||||||||
Ending, December 31 | 3 | $ | 1,097 | 4 | $ | 1,126 | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Active | Principal | Active | Principal | ||||||||||||||||||||||
Balance, January 1 | 6 | $ | 8,042 | 4 | $ | 6,625 | |||||||||||||||||||
New agreements | 2 | 990 | 2 | 3,281 | |||||||||||||||||||||
Paid off/Foreclosed | (3 | ) | (4,507 | ) | — | — | |||||||||||||||||||
Principal collected | — | (297 | ) | — | (1,864 | ) | |||||||||||||||||||
Ending, December 31 | 5 | $ | 4,228 | 6 | $ | 8,042 | |||||||||||||||||||
Provision for loan losses | $ | — | $ | — | |||||||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Secured loans in nonaccrual status | |||||||||||||||||||||||||
Number of loans | 8 | 18 | |||||||||||||||||||||||
Principal | $ | 18,361 | $ | 43,352 | |||||||||||||||||||||
Advances | 688 | 5,028 | |||||||||||||||||||||||
Accrued interest | 63 | 11 | |||||||||||||||||||||||
Loan balance | $ | 19,112 | $ | 48,391 | |||||||||||||||||||||
Foregone interest | $ | 887 | $ | 3,255 | |||||||||||||||||||||
Past Due [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of loans (3) (4) | 5 | 14 | |||||||||||||||||||||||
Principal | $ | 17,694 | $ | 36,486 | |||||||||||||||||||||
Advances | 683 | 5,014 | |||||||||||||||||||||||
Accrued interest | 63 | 61 | |||||||||||||||||||||||
Loan balance | $ | 18,440 | $ | 41,561 | |||||||||||||||||||||
Percent of principal | 34 | % | 60 | % | |||||||||||||||||||||
By Days Past Due [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Past due | |||||||||||||||||||||||||
30-89 days | $ | 665 | $ | 783 | |||||||||||||||||||||
90-179 days | 17,197 | 2,062 | |||||||||||||||||||||||
180 or more days | 474 | 19,033 | |||||||||||||||||||||||
Total past due | 18,336 | 21,878 | |||||||||||||||||||||||
Current | 33,554 | 38,992 | |||||||||||||||||||||||
Total secured loans | $ | 51,890 | $ | 60,870 | |||||||||||||||||||||
Impaired Loans [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal | $ | 21,499 | $ | 45,964 | |||||||||||||||||||||
Recorded investment(5) | $ | 22,249 | $ | 51,054 | |||||||||||||||||||||
Impaired loans without allowance | $ | 4,149 | $ | 9,611 | |||||||||||||||||||||
Impaired loans with allowance | $ | 18,100 | $ | 41,443 | |||||||||||||||||||||
Allowance for loan losses, impaired loans | $ | 8,740 | $ | 19,560 | |||||||||||||||||||||
Average Balances and Interest Income [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Average recorded investment | $ | 36,652 | $ | 66,898 | |||||||||||||||||||||
Interest income recognized | $ | 156 | $ | 195 | |||||||||||||||||||||
Interest income received in cash | $ | 378 | $ | 612 | |||||||||||||||||||||
Loan Loss Activity [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Balance, January 1 | $ | 19,815 | $ | 22,035 | |||||||||||||||||||||
Provision for loan losses | (1,040 | ) | 859 | ||||||||||||||||||||||
Charge-offs, net | |||||||||||||||||||||||||
Charge-offs | (14,623 | ) | (3,100 | ) | |||||||||||||||||||||
Recoveries | 4,638 | 21 | |||||||||||||||||||||||
Charge-offs, net | (9,985 | ) | (3,079 | ) | |||||||||||||||||||||
Balance, December 31 | $ | 8,790 | $ | 19,815 | |||||||||||||||||||||
Ratio of charge-offs, net during the period to average secured loans outstanding during the period | 17 | % | 4.32 | % | |||||||||||||||||||||
By Property Typle [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||
Secured loans by property type | |||||||||||||||||||||||||
Single family | $ | 8,790 | 65 | % | $ | 19,255 | 76 | % | |||||||||||||||||
Multi-family | — | 2 | 60 | 4 | |||||||||||||||||||||
Commercial | — | 33 | 500 | 20 | |||||||||||||||||||||
Total for secured loans | $ | 8,790 | 100 | % | $ | 19,815 | 100 | % | |||||||||||||||||
Unsecured loans | $ | — | 100 | % | $ | — | 100 | % | |||||||||||||||||
Total allowance for loan losses | $ | 8,790 | 100 | % | $ | 19,815 | 100 | % |
Note_5_Real_Estate_Owned_REO_T
Note 5 - Real Estate Owned (REO) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||||||||||||||||||
REO Held for Sale [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Balance, January 1 | $ | — | $ | 48,406 | |||||||||||||||||||||||||||||
Acquisitions | 3,895 | — | |||||||||||||||||||||||||||||||
Dispositions | (7,745 | ) | (30,003 | ) | |||||||||||||||||||||||||||||
Improvements/betterments | 11 | 447 | |||||||||||||||||||||||||||||||
Designated from REO held as investment | 20,594 | — | |||||||||||||||||||||||||||||||
Designated to REO held as investment | — | (18,337 | |||||||||||||||||||||||||||||||
Change in net book value | (160 | ) | (513 | ) | |||||||||||||||||||||||||||||
Depreciation | (43 | ) | — | ||||||||||||||||||||||||||||||
Balance, December 31 | $ | 16,552 | $ | — | |||||||||||||||||||||||||||||
Property type | |||||||||||||||||||||||||||||||||
Rental | $ | 10,541 | — | ||||||||||||||||||||||||||||||
Development | 6,011 | — | |||||||||||||||||||||||||||||||
Total REO, held for sale | $ | 16,552 | — | ||||||||||||||||||||||||||||||
Number of properties, December 31 | 3 | — | |||||||||||||||||||||||||||||||
REO, Held as Investment, the Activity and Changes in the Impairment Reserves [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
NBV | Accumulated Depreciation | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Balance, January 1 | $ | 181,333 | $ | 161,402 | $ | 5,926 | $ | 3,594 | |||||||||||||||||||||||||
Acquisitions | 3,099 | 1,649 | — | — | |||||||||||||||||||||||||||||
Dispositions | (1,696 | ) | 7 | — | (7 | ) | |||||||||||||||||||||||||||
Improvements/betterments | 4,059 | 2,925 | — | — | |||||||||||||||||||||||||||||
Designated from REO held for sale | — | 18,337 | — | — | |||||||||||||||||||||||||||||
Designated to REO held for sale | (20,594 | ) | — | (411 | ) | — | |||||||||||||||||||||||||||
Changes in net book values (NBV) | (878 | ) | (648 | ) | — | — | |||||||||||||||||||||||||||
Depreciation | (2,760 | ) | (2,339 | ) | 2,760 | 2,339 | |||||||||||||||||||||||||||
Balance, December 31 | $ | 162,563 | $ | 181,333 | $ | 8,275 | $ | 5,926 | |||||||||||||||||||||||||
REO, Held as Investment by Property Type [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Properties | NBV | Properties | NBV | ||||||||||||||||||||||||||||||
Property classification | |||||||||||||||||||||||||||||||||
Rental | 19 | $ | 141,812 | 19 | $ | 154,566 | |||||||||||||||||||||||||||
Development | 5 | 20,751 | 6 | 26,767 | |||||||||||||||||||||||||||||
Total REO, held as investment, net | 24 | $ | 162,563 | 25 | $ | 181,333 | |||||||||||||||||||||||||||
REO Held as Investment by Geographic Area [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Rental | Non-Rental | Rental | Non-Rental | ||||||||||||||||||||||||||||||
County | No. | NBV | No. | NBV | No. | NBV | No. | NBV | |||||||||||||||||||||||||
San Francisco | 3 | $ | 3,915 | 1 | $ | 5,776 | 5 | $ | 17,962 | 2 | $ | 11,398 | |||||||||||||||||||||
San Francisco Bay Area(1)(2) | |||||||||||||||||||||||||||||||||
Alameda | 3 | 8,515 | — | — | 3 | 8,310 | — | — | |||||||||||||||||||||||||
Contra Costa | 4 | 13,985 | — | — | 3 | 12,651 | — | — | |||||||||||||||||||||||||
Marin | — | — | 1 | 1,209 | — | — | 1 | 1,210 | |||||||||||||||||||||||||
Napa | 1 | 1,491 | — | — | 1 | 1,592 | — | — | |||||||||||||||||||||||||
Solano | 1 | 1,149 | — | — | — | — | — | — | |||||||||||||||||||||||||
9 | 25,140 | 1 | 1,209 | 7 | 22,553 | 1 | 1,210 | ||||||||||||||||||||||||||
Northern California(1) | |||||||||||||||||||||||||||||||||
Amador | 1 | 1,551 | — | — | 1 | 1,603 | — | — | |||||||||||||||||||||||||
Fresno | — | — | 1 | 1,612 | — | — | 1 | 1,635 | |||||||||||||||||||||||||
Sacramento | 1 | 40,165 | — | — | 1 | 40,515 | — | — | |||||||||||||||||||||||||
San Joaquin | 2 | 3,235 | — | — | 2 | 2,878 | — | — | |||||||||||||||||||||||||
Stanislaus | — | — | 1 | 2,790 | — | — | 1 | 3,700 | |||||||||||||||||||||||||
Sutter | 1 | 475 | — | — | 1 | 484 | — | — | |||||||||||||||||||||||||
5 | 45,426 | 2 | 4,402 | 5 | 45,480 | 2 | 5,335 | ||||||||||||||||||||||||||
Southern California | |||||||||||||||||||||||||||||||||
Los Angeles | 2 | 67,331 | 1 | 9,364 | 2 | 68,571 | 1 | 8,824 | |||||||||||||||||||||||||
2 | 67,331 | 1 | 9,364 | 2 | 68,571 | 1 | 8,824 | ||||||||||||||||||||||||||
Total REO Held as investment | 19 | $ | 141,812 | 5 | $ | 20,751 | 19 | $ | 154,566 | 6 | $ | 26,767 | |||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Properties | NBV | Properties | NBV | ||||||||||||||||||||||||||||||
Property type | |||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||
Single family | 3 | $ | 8,879 | 4 | $ | 14,624 | |||||||||||||||||||||||||||
Apartments | 1 | 527 | 1 | 376 | |||||||||||||||||||||||||||||
Condominiums(3) | 4 | 65,014 | 4 | 68,448 | |||||||||||||||||||||||||||||
Fractured Condominiums(4) | 10 | 71,588 | 10 | 72,292 | |||||||||||||||||||||||||||||
Commercial(5) | 6 | 16,555 | 6 | 25,593 | |||||||||||||||||||||||||||||
Total REO, held as investment, net | 24 | $ | 162,563 | 25 | $ | 181,333 | |||||||||||||||||||||||||||
Earnings/(Loss) from Rental Operations of the Real Estate Owned, Held as Investment [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Rental income | $ | 11,125 | $ | 11,557 | |||||||||||||||||||||||||||||
Operating expenses, rentals | |||||||||||||||||||||||||||||||||
Administration and payroll | 1,394 | 1,431 | |||||||||||||||||||||||||||||||
Homeowner association fees | 857 | 865 | |||||||||||||||||||||||||||||||
Professional services | 275 | 296 | |||||||||||||||||||||||||||||||
Utilities and maintenance | 1,223 | 1,238 | |||||||||||||||||||||||||||||||
Advertising and promotions | 136 | 128 | |||||||||||||||||||||||||||||||
Property taxes | 1,171 | 1,849 | |||||||||||||||||||||||||||||||
Other | 225 | 280 | |||||||||||||||||||||||||||||||
Total operating expenses, rentals | 5,281 | 6,087 | |||||||||||||||||||||||||||||||
Net operating income | 5,844 | 5,470 | |||||||||||||||||||||||||||||||
Depreciation | 2,597 | 2,328 | |||||||||||||||||||||||||||||||
Receiver fees | 60 | 239 | |||||||||||||||||||||||||||||||
Rental operations, net | 3,187 | 2,903 | |||||||||||||||||||||||||||||||
Interest on mortgages | 1,683 | 2,395 | |||||||||||||||||||||||||||||||
Rental operation, net, less related mortgage interest | $ | 1,504 | $ | 508 |
Note_6_Borrowings_Tables
Note 6 - Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Participating Mortgage Loans [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Principal, January 1 | $ | 47,293 | $ | 43,681 | |||||
New mortgages taken | 5,000 | 5,160 | |||||||
Principal repaid | (3,355 | ) | (1,548 | ) | |||||
Principal, December 31 | $ | 48,938 | $ | 47,293 | |||||
Schedule of Debt [Table Text Block] | ' | ||||||||
Lender – summary of terms | 2013 | 2012 | |||||||
NorthMarq Capital – Secured by a condominium complex, located in Los Angeles County, matures July 1, 2015, interest rate (2.90%) varies monthly (LIBOR plus 2.73%), monthly payment(1)(2) $119,758 | $ | 18,170 | $ | 18,607 | |||||
East West Bank – Secured by a fractured condominium project located in Sacramento County, matures June 1, 2017, interest rate varies monthly (greater of Prime plus 1% or 5.50%), monthly payment(2) $78,283 | 13,391 | 13,578 | |||||||
Business Partners – Secured by a commercial property located in San Francisco County, matures May 1, 2015, interest rate varies monthly (greater of 5-year Treasuries plus 2.33% or 6.53%), monthly payment(1)(2) $79,155 | 6,721 | 7,100 | |||||||
Chase Bank – Secured by a condominium complex located in Contra Costa County, matures September 1, 2042, interest rate variable (fixed until September 1, 2017 at 3.52%), monthly payment $23,228 | 5,036 | 5,136 | |||||||
CapitalSource – Secured by a condominium complex, located in Los Angeles County, matures July 1, 2023, interest rate variable (fixed until June 1, 2016 at 3.95%), monthly payment(1)(2) $42,258 | 4,952 | — | |||||||
First National Bank of Northern California – Secured by eight condominium units located in San Francisco County, matures November 1, 2016, interest rate varies monthly (greater of Prime plus 2.35% or 5.70%), monthly payment(2) $12,856 | — | 2,179 | |||||||
Wells Fargo Bank – Secured by a condominium unit located in San Francisco County, matures October 1, 2032, interest rate (2.88%) varies annually (LIBOR plus 2.75%), monthly payment $2,014 | 351 | 365 | |||||||
Wells Fargo Bank – Secured by a condominium unit located in San Francisco County, matures September 15, 2032, interest rate (4.03%) varies annually (bank rate plus 3.10%), monthly payment $2,174 | 317 | 328 | |||||||
Total mortgages payable | $ | 48,938 | $ | 47,293 | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||||||
2014 | $ | 1,326 | |||||||
2015 | 24,506 | ||||||||
2016 | 503 | ||||||||
2017 | 13,012 | ||||||||
2018 | 292 | ||||||||
Thereafter | 9,299 | ||||||||
Total | $ | 48,938 |
Note_7_Fair_Value_Tables
Note 7 - Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | ' | ||||||||||||||||
Fair Value Measurement at Report Date Using | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | Total | ||||||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||||||
Item | (Level 1) | (Level 2) | (Level 3) | 12/31/13 | |||||||||||||
Impaired loans with allowance, net(1) | $ | — | $ | 9,360 | $ | — | $ | 9,360 | |||||||||
REO held for sale | $ | — | $ | 16,552 | $ | — | $ | 16,552 | |||||||||
REO held as investment(2) | $ | — | $ | 4,868 | $ | 1,551 | $ | 6,419 | |||||||||
Impaired loans with allowance, net foreclosed upon during 2013(1)(3) | $ | — | $ | 2,662 | $ | — | $ | 2,662 | |||||||||
Impaired loans with allowance, net foreclosed and sold during 2013(1) | $ | — | $ | 3,895 | $ | — | $ | 3,895 | |||||||||
Fair Value Measurement at Report Date Using | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | Total | ||||||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||||||
Item | (Level 1) | (Level 2) | (Level 3) | 12/31/12 | |||||||||||||
Impaired loans with allowance, net(1) | $ | — | $ | 21,883 | $ | — | $ | 21,883 | |||||||||
REO held for sale | $ | — | $ | — | $ | — | $ | — | |||||||||
REO held as investment(2) | $ | — | $ | 12,022 | $ | 1,603 | $ | 13,625 | |||||||||
Impaired loans with allowance, net foreclosed upon during 2012(1)(3) | $ | — | $ | 1,634 | $ | — | $ | 1,634 | |||||||||
Impaired loans with allowance, net foreclosed and sold during 2012(1) | $ | — | $ | — | $ | — | $ | — |
Note_1_Organizational_and_Gene2
Note 1 - Organizational and General (Details) (USD $) | 12 Months Ended | 13 Months Ended | 21 Months Ended | 23 Months Ended | 24 Months Ended | 36 Months Ended | 40 Months Ended | 48 Months Ended | 56 Months Ended | 60 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2005 | Dec. 31, 1996 | Oct. 31, 2003 | Apr. 30, 2002 | Aug. 31, 2005 | Dec. 31, 2003 | Sep. 30, 2012 | Dec. 31, 2002 | Nov. 30, 2008 | Dec. 31, 2008 | Dec. 31, 2006 | Aug. 31, 2000 | Dec. 31, 2000 | |
Note 1 - Organizational and General (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Amount of Time Before Leaving Partnership | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Percentage of Total Limited Partners Capital Available for Liquidation During One Year | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Quarterly Installments for Withdrawal From Partnership | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Early Withdrawl Penalty Percentage | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Amount of Time Before Leaving Partnership Without Penalty | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partners Capital Authorized Offering | $15,000,000 | $300,000,000 | ' | ' | $50,000,000 | $30,000,000 | $75,000,000 | $50,000,000 | ' | $30,000,000 | $100,000,000 | $100,000,000 | $75,000,000 | $30,000,000 | $30,000,000 |
Partners' Capital Account, Sale of Units | ' | 299,813,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Formation Loan Payments | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' |
Formation Loan Made | 22,567,000 | ' | 7,564,000 | 1,075,000 | ' | ' | ' | 3,777,000 | ' | 2,218,000 | ' | ' | 5,661,000 | 2,272,000 | ' |
Percentage of Limited Partners Contributions | ' | ' | 7.60% | 7.20% | ' | ' | ' | 7.60% | ' | 7.40% | ' | ' | 7.60% | 7.60% | ' |
Limited Partners' Contributed Capital | 299,813,000 | 100,000,000 | 100,000,000 | 14,932,000 | ' | ' | ' | 49,985,000 | ' | 29,999,000 | ' | 100,000,000 | 74,904,000 | 29,993,000 | 29,993,000 |
Number of Annual Installments | ' | ' | 10 | ' | ' | ' | ' | 10 | ' | 10 | ' | 10 | ' | ' | ' |
Annual Installment Repayment Amount | ' | ' | 756,400 | ' | ' | ' | ' | 377,700 | ' | 221,800 | ' | 566,000 | ' | ' | ' |
Three Years [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 1 - Organizational and General (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Formation Loan Payments | ' | ' | ' | ' | ' | ' | ' | ' | 5,400,000 | ' | ' | ' | ' | ' | ' |
Scenario, Forecast [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 1 - Organizational and General (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Gross Proceeds Paid for Sale Commissions | 7.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Investors Estimated to Reinvest Profits | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Commissions | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Scenario, Actual [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 1 - Organizational and General (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Commissions | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 1 - Organizational and General (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partners Capital Authorized Offering | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Gross Proceeds Paid for Sale Commissions | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 1 - Organizational and General (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partners Capital Authorized Offering | ' | ' | ' | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Gross Proceeds Paid for Sale Commissions | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_1_Organizational_and_Gene3
Note 1 - Organizational and General (Details) - Reconciliation of Partners' Capital (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Reconciliation of Partners' Capital [Abstract] | ' | ' |
Partners’ capital per consolidated financial statements | $193,212 | $195,056 |
Unallocated syndication costs | ' | 321 |
Allowance for loan losses | 8,790 | 19,815 |
Book vs. tax basis-real estate owned | -15,475 | -11,721 |
Formation loans receivable | 7,627 | 7,627 |
Partners’ capital - tax basis | $194,154 | $211,098 |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 72.50% |
Estimating Real Property Value, Number of Approaches | 3 |
Cash and Cash Equivalents, Maximum Initial Maturity | '3 months |
Per Amount of Net Income Invested by Limited Partners (in Dollars) | $1,000 |
Minimum [Member] | ' |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' |
Interest Reserve Minimum Length | '1 year |
Maximum [Member] | ' |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' |
Interest Reserve Maximum Length | '2 years |
Residential Lease Term | '1 year |
Note_3_General_Partners_and_Ot2
Note 3 - General Partners and Other Related Parties (Details) (USD $) | 12 Months Ended | 13 Months Ended | 21 Months Ended | 23 Months Ended | 24 Months Ended | 36 Months Ended | 40 Months Ended | 48 Months Ended | 56 Months Ended | 60 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Dec. 31, 1996 | Oct. 31, 2003 | Apr. 30, 2002 | Aug. 31, 2005 | Dec. 31, 2003 | Sep. 30, 2012 | Dec. 31, 2002 | Nov. 30, 2008 | Dec. 31, 2008 | Dec. 31, 2006 | Aug. 31, 2000 | Dec. 31, 2000 | Dec. 31, 2005 | |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $433,000 | ($5,654,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Formation Loan Payments | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' |
Limit Percentage of Total Assets For Brokerage Commissions | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 431,000 | 116,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees and Commissions, Other | 21,641 | 1,826 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Servicing Fees, Percentage | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Management Fees | 765,000 | 840,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Expenses | 1,182,000 | 3,238,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Syndication Costs Incurred | 5,010,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partners Capital Authorized Offering | 15,000,000 | ' | 300,000,000 | ' | 50,000,000 | 30,000,000 | 75,000,000 | 50,000,000 | ' | 30,000,000 | 100,000,000 | 100,000,000 | 75,000,000 | 30,000,000 | 30,000,000 | ' |
Syndication Costs Percentage of Gross Proceeds | 10.00% | ' | 1.75% | 3.90% | ' | ' | ' | 1.30% | ' | 2.10% | ' | 1.75% | 1.10% | ' | 2.00% | ' |
Syndication Costs Amount with Excess Paid by General Partners | ' | ' | ' | 600,000 | ' | ' | ' | 2,000,000 | ' | 1,200,000 | ' | 4,000,000 | 3,000,000 | ' | 1,200,000 | ' |
Limited Partners' Contributed Capital | 299,813,000 | ' | 100,000,000 | 14,932,000 | ' | ' | ' | 49,985,000 | ' | 29,999,000 | ' | 100,000,000 | 74,904,000 | 29,993,000 | 29,993,000 | 100,000,000 |
Syndication Costs and Other | ' | ' | ' | 582,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Syndication Costs | ' | ' | 1,752,000 | 570,000 | ' | ' | ' | 658,000 | ' | 643,000 | ' | 1,752,000 | 789,000 | ' | 598,000 | ' |
Organization Expense | ' | ' | ' | 12,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Syndication Costs Limit Percentage of Gross Proceeds | ' | ' | 10.00% | ' | ' | ' | ' | 10.00% | ' | 10.00% | ' | 10.00% | 10.00% | ' | 10.00% | ' |
One Percent of Total Profits and Losses [Member] | General Partner [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 4,000 | -57,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Imputed interest [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense, Related Party | 389,000 | 207,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursed to RMC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Expenses | 1,613,000 | 1,321,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General Partner [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 433,000 | -5,654,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Three Years [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Formation Loan Payments | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Servicing Fees, Percentage | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partners Capital Authorized Offering | ' | ' | ' | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_3_General_Partners_and_Ot3
Note 3 - General Partners and Other Related Parties (Details) - Formation Loan - Transactions (USD $) | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 56 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2005 | Dec. 31, 1996 | Dec. 31, 2003 | Dec. 31, 2002 | Dec. 31, 2006 | Aug. 31, 2000 | Dec. 31, 2008 | Dec. 31, 2000 | Dec. 31, 2013 | Dec. 31, 1996 | Dec. 31, 2000 | Dec. 31, 2002 | Dec. 31, 2003 | Dec. 31, 2005 | |
Initial Offering of 15000 [Member] | 1996 Offering of $30000 [Member] | 2000 Offering of $30000 [Member] | 2002 Offering of $30,000 [Member] | 2003 Offering of $75,000 [Member] | 2005 Offering of $10,000 [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited Partner contributions | $299,813,000 | $100,000,000 | $14,932,000 | $49,985,000 | $29,999,000 | $74,904,000 | $29,993,000 | $100,000,000 | $29,993,000 | $14,932,000 | $29,993,000 | $29,999,000 | $49,985,000 | $74,904,000 | $100,000,000 |
Formation Loan | 22,567,000 | 7,564,000 | 1,075,000 | 3,777,000 | 2,218,000 | 5,661,000 | 2,272,000 | ' | ' | 1,075,000 | 2,272,000 | 2,218,000 | 3,777,000 | 5,661,000 | 7,564,000 |
Unamortized discount on Formation loan | -1,834,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -23,000 | -80,000 | -414,000 | -1,317,000 |
Formation Loan, net | 20,733,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,075,000 | 2,272,000 | 2,195,000 | 3,697,000 | 5,247,000 | 6,247,000 |
Repayments | -14,297,000 | ' | ' | ' | ' | ' | ' | ' | ' | -991,000 | -2,099,000 | -1,883,000 | -2,948,000 | -3,414,000 | -2,962,000 |
Early withdrawal penalties | -643,000 | ' | ' | ' | ' | ' | ' | ' | ' | -84,000 | -173,000 | -137,000 | -100,000 | -142,000 | -7,000 |
Formation Loan, net at December 31, 2013 | 5,793,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000 | 649,000 | 1,691,000 | 3,278,000 |
Unamortized discount on Formation loan | 1,834,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000 | 80,000 | 414,000 | 1,317,000 |
Balance, December 31, 2013 | $7,627,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $198,000 | $729,000 | $2,105,000 | $4,595,000 |
Percent loaned | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | 7.20% | 7.60% | 7.40% | 7.60% | 7.60% | 7.60% |
Note_3_General_Partners_and_Ot4
Note 3 - General Partners and Other Related Parties (Details) - Future Minimum Payments on Formation Loan (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future Minimum Payments on Formation Loan [Abstract] | ' |
2015 | $1,898 |
2016 | 1,674 |
2017 | 1,323 |
2018 | 1,163 |
Thereafter | 1,569 |
Total | $7,627 |
Note_3_General_Partners_and_Ot5
Note 3 - General Partners and Other Related Parties (Details) - Mortgage Servicing Fee Activities (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Servicing Fee Activities [Abstract] | ' | ' |
Chargeable by RMC | $884 | $1,083 |
Waived by RMC | -295 | -361 |
Charged | $589 | $722 |
Note_3_General_Partners_and_Ot6
Note 3 - General Partners and Other Related Parties (Details) - Syndication Costs Distribution (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Note 3 - General Partners and Other Related Parties (Details) - Syndication Costs Distribution [Line Items] | ' |
Costs incurred | $5,010,000 |
Early withdrawal penalties applied | -643,000 |
Allocated to date | -4,820,000 |
Syndication Costs [Member] | ' |
Note 3 - General Partners and Other Related Parties (Details) - Syndication Costs Distribution [Line Items] | ' |
Early withdrawal penalties applied | ($190,000) |
Note_4_Loans_Details
Note 4 - Loans (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable, Percent of Total | 100.00% | 100.00% |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | $51,890,000 | $60,870,000 |
Number of Units in Real Estate Property | 3 | ' |
Mortgage Loans on Real Estate, Number of Loans | 36 | 39 |
Number of Sectors | 1 | ' |
Loans Receivable Number of Loans | 36 | 39 |
Interest Receivable (in Dollars) | 222,000 | 182,000 |
Largest Loan [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable, Percent of Total | 31.44% | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | 16,312,000 | ' |
Loans Receivable, Percent of Assets | 6.65% | ' |
Loans Receivable, Interest Rate, Stated | 5.00% | ' |
Larger Loans [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable, Percent of Total | 10.00% | ' |
Secured by Condominium Properties [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | 16,312,000 | 36,855,000 |
Maturity Date Extended [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | 349,000 | ' |
Mortgage Loans on Real Estate, Number of Loans | 2 | ' |
Workout Agreements [Member] | Made All Required Payments [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | ' | 709,000 |
Number of Borrowers | ' | 4 |
Workout Agreements [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | 1,097,000 | 1,126,000 |
Mortgage Loans on Real Estate, Number of Loans | 3 | 4 |
Number of Borrowers | ' | 3 |
Nonaccrual Status [Member] | Impaired Loans [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | ' | 866,000 |
Nonaccrual Status [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | 19,112,000 | 48,391,000 |
Mortgage Loans on Real Estate, Number of Loans | 8 | 18 |
Past Due 90 Days or More [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable, Interest Accrued During Period (in Dollars) | 62,000 | 50,000 |
Interest Receivable (in Dollars) | 81,000 | 14,000 |
Generally [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable, Term | '5 years | ' |
Loans Receivable, Amortization Term | '30 years | ' |
Secured by an Improved Land Lot [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | 532,000 | ' |
Mortgage Loans on Real Estate, Number of Loans | 1 | ' |
Condominium Units in Contra Costa County, California [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Number of Units in Real Estate Property | 75 | ' |
Condominium Complex [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Number of Units in Real Estate Property | 128 | ' |
Term of 5 Years or Less [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable, Percent of Total | 50.00% | ' |
Loans Receivable, Percent of Aggregate Principal | 54.00% | ' |
Interest Only [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable, Percent of Total | 47.00% | ' |
Loans Receivable, Percent of Aggregate Principal | 84.00% | ' |
Nonaccrual Status [Member] | Past Maturity [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable Number of Loans | 5 | 12 |
Nonaccrual Status [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | 425,000 | 99,000 |
Secured Loans [Member] | Past Maturity [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable Number of Loans | 5 | 10 |
Secured Debt [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net (in Dollars) | $349,000 | $967,000 |
Maximum [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable, Term | '5 years | ' |
Residential Buildings, Number of Units | 4 | ' |
Minimum [Member] | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' |
Loans Receivable, Term | '5 years | ' |
Residential Buildings, Number of Units | 1 | ' |
Note_4_Loans_Details_Secured_L
Note 4 - Loans (Details) - Secured Loan Transactions (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 4 - Loans (Details) - Secured Loan Transactions [Line Items] | ' | ' |
Total secured loans (in Dollars) | $60,870,000 | ' |
Loans funded or acquired | 104,000 | -36,000 |
Total secured loans (in Dollars) | 51,890,000 | 60,870,000 |
Secured Loans [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loan Transactions [Line Items] | ' | ' |
Total secured loans (in Dollars) | 60,870,000 | 73,386,000 |
Loans funded or acquired | 22,285,000 | 10,522,000 |
Principal collected | -9,931,000 | -17,401,000 |
Loans sold to affiliates | -2,107,000 | -1,189,000 |
Foreclosures | -18,975,000 | -3,728,000 |
Other – loans charged off against allowance | -252,000 | -720,000 |
Total secured loans (in Dollars) | $51,890,000 | $60,870,000 |
Note_4_Loans_Details_Secured_L1
Note 4 - Loans (Details) - Secured Loans Characteristics (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Secured Loans Characteristics [Abstract] | ' | ' |
Number of secured loans | 36 | 39 |
Secured loans – principal (in Dollars) | $51,890 | $60,870 |
Secured loans – lowest interest rate (fixed) | 4.00% | 3.00% |
Secured loans – highest interest rate (fixed) | 12.00% | 12.00% |
Average secured loan – principal (in Dollars) | 1,441 | 1,561 |
Average principal as percent of total principal | 2.78% | 2.56% |
Average principal as percent of partners’ capital | 0.75% | 0.80% |
Average principal as percent of total assets | 0.59% | 0.63% |
Largest secured loan – principal (in Dollars) | 16,312 | 16,697 |
Largest principal as percent of total principal | 31.44% | 27.43% |
Largest principal as percent of partners’ capital | 8.44% | 8.56% |
Largest principal as percent of total assets | 6.65% | 6.74% |
Smallest secured loan – principal (in Dollars) | 79 | 87 |
Smallest principal as percent of total principal | 0.15% | 0.14% |
Smallest principal as percent of partners’ capital | 0.04% | 0.04% |
Smallest principal as percent of total assets | 0.03% | 0.04% |
Number of counties where security is located (all California) | 17 | 19 |
Largest percentage of principal in one county | 41.68% | 46.18% |
Number of secured loans in foreclosure status | 2 | 6 |
Secured loans in foreclosure – principal (in Dollars) | $16,689 | $1,910 |
Note_4_Loans_Details_Secured_L2
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ||
Secured loans | 36 | 39 | ||
Secured loans – principal (in Dollars) | $51,890,000 | $60,870,000 | ||
Secrured loans - percent | 100.00% | 100.00% | ||
Liens due other lenders at loan closing (in Dollars) | 53,098,000 | 80,875,000 | ||
Total debt (in Dollars) | 104,988,000 | 141,745,000 | ||
Appraised property value at loan closing (in Dollars) | 148,215,000 | 199,392,000 | ||
Percent of total debt to appraised values (LTV) at loan closing (1) | 70.83% | [1] | 71.10% | [1] |
First Trust Deeds [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ||
Secured loans | 19 | 17 | ||
Secured loans – principal (in Dollars) | 36,816,000 | 33,785,000 | ||
Secrured loans - percent | 71.00% | 56.00% | ||
Second Trust Deeds [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ||
Secured loans | 16 | 21 | ||
Secured loans – principal (in Dollars) | 14,784,000 | 26,789,000 | ||
Secrured loans - percent | 28.00% | 44.00% | ||
Third Trust Deeds [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ||
Secured loans | 1 | 1 | ||
Secured loans – principal (in Dollars) | $290,000 | $296,000 | ||
Secrured loans - percent | 1.00% | ' | ||
[1] | Based on appraised values and liens due other lenders at loan closing. The loan to value computation does not take into account subsequent increases or decreases in security property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders by payments or interest accruals, if any. Property values likely have changed, particularly over the last four years, and the portfolio's current loan to value ratio likely is higher than this historical ratio. |
Note_4_Loans_Details_Secured_L3
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral [Line Items] | ' | ' | ||
Secured loans - loans | 36 | 39 | ||
Secured loans – principal (in Dollars) | $51,890,000 | $60,870,000 | ||
Secured loans - percent | 100.00% | 100.00% | ||
Single Family [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral [Line Items] | ' | ' | ||
Secured loans - loans | 27 | 31 | ||
Secured loans – principal (in Dollars) | 33,771,000 | 46,295,000 | ||
Secured loans - percent | 65.00% | 76.00% | ||
Multi-family [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral [Line Items] | ' | ' | ||
Secured loans - loans | 1 | 2 | ||
Secured loans – principal (in Dollars) | 1,000,000 | 2,557,000 | ||
Secured loans - percent | 2.00% | 4.00% | ||
Commercial [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral [Line Items] | ' | ' | ||
Secured loans - loans | 8 | [1] | 6 | [1] |
Secured loans – principal (in Dollars) | $17,119,000 | [1] | $12,018,000 | [1] |
Secured loans - percent | 33.00% | [1] | 20.00% | [1] |
[1] | Includes one loan with a principal balance of approximately $532,000, secured by an improved land lot, with plans to be developed as a five-unit townhouse by the borrower. |
Note_4_Loans_Details_Secured_L4
Note 4 - Loans (Details) - Secured Loans Distributed within California (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | $51,890,000 | $60,870,000 | ||
Percent | 100.00% | 100.00% | ||
San Francisco [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 21,627,000 | 28,115,000 | ||
Percent | 41.68% | 46.18% | ||
Contra Costa [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 16,647,000 | [1] | 17,927,000 | [1] |
Percent | 32.08% | [1] | 29.44% | [1] |
Santa Clara [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 3,208,000 | [1] | 3,182,000 | [1] |
Percent | 6.18% | [1] | 5.23% | [1] |
San Mateo [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 1,765,000 | [1] | 665,000 | [1] |
Percent | 3.40% | [1] | 1.09% | [1] |
Alameda [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 1,260,000 | [1] | 1,682,000 | [1] |
Percent | 2.43% | [1] | 2.76% | [1] |
Solano [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | ' | [1] | 1,641,000 | [1] |
Percent | ' | [1] | 2.70% | [1] |
Napa [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 406,000 | [1] | 411,000 | [1] |
Percent | 0.78% | [1] | 0.68% | [1] |
Marin [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 180,000 | [1] | 180,000 | [1] |
Percent | 0.35% | [1] | 0.30% | [1] |
San Francisco Bay Area [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 23,466,000 | [1] | 25,688,000 | [1] |
Percent | 45.22% | [1] | 42.20% | [1] |
Sacramento [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 249,000 | 2,518,000 | ||
Percent | 0.48% | 4.14% | ||
Calaveras [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 182,000 | 196,000 | ||
Percent | 0.35% | 0.32% | ||
Monterey [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 178,000 | 183,000 | ||
Percent | 0.34% | 0.30% | ||
San Benito [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 97,000 | 98,000 | ||
Percent | 0.19% | 0.16% | ||
Butte [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 79,000 | 115,000 | ||
Percent | 0.15% | 0.19% | ||
Other Northern California [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 785,000 | 3,110,000 | ||
Percent | 1.51% | 5.11% | ||
Northern California [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 45,878,000 | 56,913,000 | ||
Percent | 88.41% | 93.49% | ||
Southern California [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 6,012,000 | 3,957,000 | ||
Percent | 11.59% | 6.51% | ||
Riverside [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | ' | 2,140,000 | ||
Percent | ' | 3.52% | ||
Los Angeles [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 2,511,000 | 817,000 | ||
Percent | 4.84% | 1.34% | ||
San Diego [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 1,680,000 | 95,000 | ||
Percent | 3.24% | 0.16% | ||
Orange [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 1,354,000 | 588,000 | ||
Percent | 2.61% | 0.97% | ||
Ventura [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | 350,000 | ' | ||
Percent | 0.67% | ' | ||
San Bernardino [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | ' | 196,000 | ||
Percent | ' | 0.32% | ||
Kern [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Principal balances | $117,000 | $121,000 | ||
Percent | 0.23% | 0.20% | ||
[1] | Includes Silicon Valley |
Note_4_Loans_Details_Secured_L5
Note 4 - Loans (Details) - Secured Loans Scheduled Maturities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Secured Loans Scheduled Maturities [Abstract] | ' | ' | ||
2014 | 6 | ' | ||
2014 (in Dollars) | $10,754 | ' | ||
2014 | 21.00% | ' | ||
2015 | 10 | ' | ||
2015 (in Dollars) | 14,484 | ' | ||
2015 | 28.00% | ' | ||
2016 | 6 | ' | ||
2016 (in Dollars) | 5,450 | ' | ||
2016 | 10.00% | ' | ||
2017 | 4 | ' | ||
2017 (in Dollars) | 1,391 | ' | ||
2017 | 3.00% | ' | ||
2018 | 2 | ' | ||
2018 (in Dollars) | 585 | ' | ||
2018 | 1.00% | ' | ||
Thereafter | 3 | ' | ||
Thereafter (in Dollars) | 1,532 | ' | ||
Thereafter | 3.00% | ' | ||
Total future maturities | 31 | ' | ||
Total future maturities (in Dollars) | 34,196 | ' | ||
Total future maturities | 66.00% | ' | ||
Matured at December 31, 2013 | 5 | [1],[2] | 14 | [1],[2] |
Matured at December 31, 2013 (in Dollars) | 17,694 | ' | ||
Matured at December 31, 2013 | 34.00% | ' | ||
Total secured loans | 36 | 39 | ||
Total secured loans (in Dollars) | $51,890 | $60,870 | ||
Total secured loans | 100.00% | ' | ||
[1] | The secured loans past maturity include 5 and 12 loans as of December 31, 2013 and 2012, respectively, also included in the secured loans in non-accrual status. | |||
[2] | The secured loans past maturity include 5 and 10 loans as of December 31, 2013 and 2012, respectively, also included in the secured loans delinquency. |
Note_4_Loans_Details_Secured_L6
Note 4 - Loans (Details) - Secured Loans Past Maturity (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Number of loans (3) (4) | 5 | [1],[2] | 14 | [1],[2] |
Principal | $51,890,000 | $60,870,000 | ||
Advances | 708,000 | 5,035,000 | ||
Accrued interest | 222,000 | 182,000 | ||
Loan balance | 44,142,000 | 46,280,000 | ||
Percent of principal | 100.00% | 100.00% | ||
Past Maturity [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Principal | 17,694,000 | 36,486,000 | ||
Advances | 683,000 | 5,014,000 | ||
Accrued interest | 63,000 | 61,000 | ||
Loan balance | $18,440,000 | $41,561,000 | ||
Percent of principal | 34.00% | 60.00% | ||
[1] | The secured loans past maturity include 5 and 12 loans as of December 31, 2013 and 2012, respectively, also included in the secured loans in non-accrual status. | |||
[2] | The secured loans past maturity include 5 and 10 loans as of December 31, 2013 and 2012, respectively, also included in the secured loans delinquency. |
Note_4_Loans_Details_Secured_L7
Note 4 - Loans (Details) - Secured Loans Summarized by Payment Delinquency (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Principal | $51,890,000 | $60,870,000 |
Past Due 30-89 Days [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Principal | 665,000 | 783,000 |
Past Due 90-179 Days [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Principal | 17,197,000 | 2,062,000 |
Past Due 180 Days or More [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Principal | 474,000 | 19,033,000 |
Past Due [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Principal | 18,336,000 | 21,878,000 |
Current [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Principal | $33,554,000 | $38,992,000 |
Note_4_Loans_Details_Modificat
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, Balance | 36 | 39 |
Principal, New modifications/ agreements | $5,000 | $5,160 |
Beginning of Period [Member] | Modified Secured Loan [Member] | ' | ' |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, Balance | 5 | 3 |
Principal, Balance | 6,085 | 908 |
Principal, Balance | ' | 6,085 |
Beginning of Period [Member] | Workout Agreements [Member] | ' | ' |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, Balance | 4 | 8 |
Principal, Balance | 1,126 | 4,255 |
Principal, Balance | ' | 1,126 |
Beginning of Period [Member] | Troubled Debt Restructuring [Member] | ' | ' |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, Balance | 6 | 4 |
Principal, Balance | 8,042 | 6,625 |
Principal, Balance | ' | 8,042 |
End of Period [Member] | Modified Secured Loan [Member] | ' | ' |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, Balance | 5 | 5 |
Principal, Balance | 6,085 | ' |
Principal, Balance | 3,947 | 6,085 |
End of Period [Member] | Workout Agreements [Member] | ' | ' |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, Balance | 3 | 4 |
Principal, Balance | 1,126 | ' |
Principal, Balance | 1,097 | 1,126 |
End of Period [Member] | Troubled Debt Restructuring [Member] | ' | ' |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, Balance | 5 | 6 |
Principal, Balance | 8,042 | ' |
Principal, Balance | 4,228 | 8,042 |
Modified Secured Loan [Member] | ' | ' |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, New modifications/ agreements | 1 | 2 |
Principal, New modifications/ agreements | 325 | 5,225 |
Number, Paid off/Foreclosed | -1 | ' |
Principal, Paid off/Foreclosed | -2,140 | ' |
Principal, Principal collected | -323 | -48 |
Workout Agreements [Member] | ' | ' |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, New modifications/ agreements | 1 | 2 |
Principal, New modifications/ agreements | 665 | 613 |
Number, Paid off/Foreclosed | -2 | ' |
Principal, Paid off/Foreclosed | -670 | ' |
Expired/Voided | ' | -6 |
Expired/Voided | ' | -3,735 |
Principal, Principal collected | -24 | -7 |
Troubled Debt Restructuring [Member] | ' | ' |
Note 4 - Loans (Details) - Modifications, Workout Agreements and Troubled Debt Restructurings on Secured Loan Transactions [Line Items] | ' | ' |
Number, New modifications/ agreements | 2 | 2 |
Principal, New modifications/ agreements | 990 | 3,281 |
Number, Paid off/Foreclosed | -3 | ' |
Principal, Paid off/Foreclosed | -4,507 | ' |
Principal, Principal collected | ($297) | ($1,864) |
Note_4_Loans_Details_Secured_L8
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Number of loans | 36 | 39 |
Principal | $51,890,000 | $60,870,000 |
Nonaccrual Status [Member] | Principal [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Principal | 18,361,000 | 43,352,000 |
Nonaccrual Status [Member] | Advances [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Principal | 688,000 | 5,028,000 |
Nonaccrual Status [Member] | Accrued Interest [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Principal | 63,000 | 11,000 |
Nonaccrual Status [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Number of loans | 8 | 18 |
Principal | 19,112,000 | 48,391,000 |
Foregone interest | $887,000 | $3,255,000 |
Note_4_Loans_Details_Secured_L9
Note 4 - Loans (Details) - Secured Loans Designated as Impaired Loans (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Secured Loans Designated as Impaired Loans [Abstract] | ' | ' | ||
Principal | $21,499 | $45,964 | ||
Recorded investment(5) | 22,249 | [1] | 51,054 | [1] |
Impaired loans without allowance | 4,149 | 9,611 | ||
Impaired loans with allowance | 18,100 | 41,443 | ||
Allowance for loan losses, impaired loans | $8,740 | $19,560 | ||
[1] | Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. |
Note_4_Loans_Details_Impaired_
Note 4 - Loans (Details) - Impaired Loans - Average Balances and Interest Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Impaired Loans - Average Balances and Interest Income [Abstract] | ' | ' |
Average recorded investment | $36,652 | $66,898 |
Interest income recognized | 156 | 195 |
Interest income received in cash | $378 | $612 |
Note_4_Loans_Details_Allowance
Note 4 - Loans (Details) - Allowance for Loan Losses Activity (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Loan Losses Activity [Abstract] | ' | ' |
Balance | $19,815 | $22,035 |
Ratio of charge-offs, net during the period to average secured loans outstanding during the period | 17.00% | 4.32% |
Provision for loan losses | -1,040 | 859 |
Charge-offs, net | ' | ' |
Charge-offs | -14,623 | -3,100 |
Recoveries | 4,638 | 21 |
Charge-offs, net | -9,985 | -3,079 |
Balance | $8,790 | $19,815 |
Note_4_Loans_Details_Allowance1
Note 4 - Loans (Details) - Allowance for Loan Losses by Property Type (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Secured loans by property type | ' | ' |
Amount (in Dollars) | $8,790 | $19,815 |
Percent | 100.00% | 100.00% |
Single Family [Member] | ' | ' |
Secured loans by property type | ' | ' |
Amount (in Dollars) | 8,790 | 19,255 |
Percent | 65.00% | 76.00% |
Multi-family [Member] | ' | ' |
Secured loans by property type | ' | ' |
Amount (in Dollars) | ' | 60 |
Percent | 2.00% | 4.00% |
Commercial [Member] | ' | ' |
Secured loans by property type | ' | ' |
Amount (in Dollars) | ' | 500 |
Percent | 33.00% | 20.00% |
Secured Loans [Member] | ' | ' |
Secured loans by property type | ' | ' |
Amount (in Dollars) | $8,790 | $19,815 |
Percent | 100.00% | 100.00% |
Unsecured Loan [Member] | ' | ' |
Secured loans by property type | ' | ' |
Percent | 100.00% | 100.00% |
Note_5_Real_Estate_Owned_REO_D
Note 5 - Real Estate Owned (REO) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Multi-Family Building [Member] | Multi-Family Rental Property [Member] | Multi-Family Rental Property [Member] | Rental Property [Member] | Rental Property [Member] | Rental Property [Member] | Rental Property [Member] | Rental Property [Member] | Commercial Office - Contra Costa County [Member] | Multi-Family Complex - Solano Count [Member] | Apartment Building [Member] | Apartment Building [Member] | Apartment Building [Member] | Apartment Building [Member] | Two Condominium Units [Member] | Residential Single Family [Member] | Commercial Property Development Site Located In San Francisco County California [Member] | Condominium Unit And 3 Tenants In Common Units [Member] | Condominium Unit And 3 Tenants In Common Units [Member] | Stanislaus County [Member] | Stanislaus County [Member] | Fresno County,California [Member] | Marin County [Member] | REO Held for Sale [Member] | REO Held for Sale [Member] | REO Held as Investment [Member] | REO Held as Investment [Member] | ||||||
San Francisco County [Member] | San Francisco County [Member] | Stanislaus County [Member] | REO Held for Sale [Member] | REO Held for Sale [Member] | REO Held as Investment [Member] | Solano County [Member] | Solano County [Member] | REO Held for Sale [Member] | REO Held for Sale [Member] | REO Held for Sale [Member] | acre | acre | acre | sqm | sqm | |||||||||||||||||
Acquired Through Foreclosure [Member] | Under Contract For Sale [Member] | Acquired Through Foreclosure [Member] | ||||||||||||||||||||||||||||||
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | ' | ' | 3 | ' | ' | 4 | ' | 8 | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (Losses) on Sales of Investment Real Estate | $4,000 | ' | $521,000 | $39,000 | ' | ' | $521,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,500,000 | $127,000 | $6,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Income Statement, Lease Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 532,000 | 6,000 | ' | ' |
Interest Expense, Other Long-term Debt | ' | ' | 2,263,000 | 2,400,000 | ' | ' | ' | ' | 580,000 | 2,000 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment Recovery | ' | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer Mortgage Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 168,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Real Estate Properties | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 5 | ' | ' | ' | ' | 1 | 1 | ' | 5 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | 2 | ' |
Real Estate Acquired Through Foreclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,200,000 | ' | 399,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,649,000 | ' | ' | ' | ' | ' |
Real Estate Investment Property, Net | 181,333,000 | ' | 162,563,000 | 181,333,000 | 161,402,000 | ' | ' | ' | ' | ' | ' | 3,915,000 | 17,962,000 | ' | ' | ' | ' | 527,000 | 376,000 | 5,776,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real Estate Investment Property, Remaining Construction Costs | ' | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of Real Estate Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 15 | ' | 13 | ' | ' | 14 | 13 |
Note_5_Real_Estate_Owned_REO_D1
Note 5 - Real Estate Owned (REO) (Details) - REO, Held for Sale (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held for Sale [Line Items] | ' | ' |
REO | $16,552 | $48,406 |
Number of properties, December 31 | 3 | ' |
Acquisitions | 3,895 | ' |
Dispositions | -7,745 | -30,003 |
Improvements/betterments | 11 | 447 |
Designated from REO held as investment | 20,594 | ' |
Designated to REO held as investment | ' | 18,337 |
Change in net book value | -160 | -513 |
Depreciation | -43 | ' |
Rental Property [Member] | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held for Sale [Line Items] | ' | ' |
REO | 10,541 | ' |
Number of properties, December 31 | 19 | 19 |
Development [Member] | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held for Sale [Line Items] | ' | ' |
REO | $6,011 | ' |
Number of properties, December 31 | 5 | 6 |
Note_5_Real_Estate_Owned_REO_D2
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, the Activity and Changes in the Impairment Reserves (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, the Activity and Changes in the Impairment Reserves [Line Items] | ' | ' |
Real Estate Held As Investment | $181,333,000 | $161,402,000 |
Real Estate Held As Investment | 5,926,000 | 3,594,000 |
Acquisitions | 3,099,000 | 1,649,000 |
Balance | -1,696,000 | 7,000 |
Balance | ' | -7,000 |
Changes in net book values (NBV) | -878,000 | -648,000 |
Depreciation | -2,760,000 | -2,339,000 |
Depreciation | 2,760,000 | 2,339,000 |
Improvements/betterments | 4,059,000 | 2,925,000 |
Designated from REO held for sale | ' | 18,337,000 |
Real Estate Held As Investment | 162,563,000 | 181,333,000 |
Real Estate Held As Investment | 8,275,000 | 5,926,000 |
Designated to REO Held For Sale [Member] | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, the Activity and Changes in the Impairment Reserves [Line Items] | ' | ' |
Balance | -20,594,000 | ' |
Balance | ($411,000) | ' |
Note_5_Real_Estate_Owned_REO_D3
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Property Type (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property classification | ' | ' | ' |
Properties | 3 | ' | ' |
NBV | $162,563,000 | $181,333,000 | $161,402,000 |
Rental Property [Member] | ' | ' | ' |
Property classification | ' | ' | ' |
Properties | 19 | 19 | ' |
NBV | 141,812,000 | 154,566,000 | ' |
Development [Member] | ' | ' | ' |
Property classification | ' | ' | ' |
Properties | 5 | 6 | ' |
NBV | 20,751,000 | 26,767,000 | ' |
REO Held as Investment [Member] | ' | ' | ' |
Property classification | ' | ' | ' |
Properties | 24 | 25 | ' |
NBV | $162,563,000 | $181,333,000 | ' |
Note_5_Real_Estate_Owned_REO_D4
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 3 | ' | ' |
NBV | $162,563,000 | $181,333,000 | $161,402,000 |
Rental Property [Member] | Alameda [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 3 | 3 | ' |
NBV | 8,515,000 | 8,310,000 | ' |
Rental Property [Member] | Contra Costa [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 4 | 3 | ' |
NBV | 13,985,000 | 12,651,000 | ' |
Rental Property [Member] | Napa [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 1 | ' |
NBV | 1,491,000 | 1,592,000 | ' |
Rental Property [Member] | Solano [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | ' | ' |
NBV | 1,149,000 | ' | ' |
Rental Property [Member] | San Francisco [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 9 | 7 | ' |
NBV | 25,140,000 | 22,553,000 | ' |
Rental Property [Member] | Amador [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 1 | ' |
NBV | 1,551,000 | 1,603,000 | ' |
Rental Property [Member] | Sacramento [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 1 | ' |
NBV | 40,165,000 | 40,515,000 | ' |
Rental Property [Member] | San Joaquin [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 2 | 2 | ' |
NBV | 3,235,000 | 2,878,000 | ' |
Rental Property [Member] | Sutter [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 1 | ' |
NBV | 475,000 | 484,000 | ' |
Rental Property [Member] | Northern California [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 5 | 5 | ' |
NBV | 45,426,000 | 45,480,000 | ' |
Rental Property [Member] | Southern California [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 2 | 2 | ' |
NBV | 67,331,000 | 68,571,000 | ' |
Rental Property [Member] | CALIFORNIA | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 19 | 19 | ' |
NBV | 141,812,000 | 154,566,000 | ' |
Rental Property [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 3 | 5 | ' |
NBV | 3,915,000 | 17,962,000 | ' |
Non-Rentals [Member] | Marin [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 1 | ' |
NBV | 1,209,000 | 1,210,000 | ' |
Non-Rentals [Member] | San Francisco [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 1 | ' |
NBV | 1,209,000 | 1,210,000 | ' |
Non-Rentals [Member] | Fresno County,California [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 1 | ' |
NBV | 1,612,000 | 1,635,000 | ' |
Non-Rentals [Member] | Stanislaus County [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 1 | ' |
NBV | 2,790,000 | 3,700,000 | ' |
Non-Rentals [Member] | Northern California [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 2 | 2 | ' |
NBV | 4,402,000 | 5,335,000 | ' |
Non-Rentals [Member] | Southern California [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 1 | ' |
NBV | 9,364,000 | 8,824,000 | ' |
Non-Rentals [Member] | CALIFORNIA | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 5 | 6 | ' |
NBV | 20,751,000 | 26,767,000 | ' |
Non-Rentals [Member] | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' |
Number of Properties | 1 | 2 | ' |
NBV | $5,776,000 | $11,398,000 | ' |
Note_5_Real_Estate_Owned_REO_D5
Note 5 - Real Estate Owned (REO) (Details) - Rental Properties (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Residential | ' | ' | ' | ||
Properties | 3 | ' | ' | ||
NBV | $162,563,000 | $181,333,000 | $161,402,000 | ||
Single Family [Member] | ' | ' | ' | ||
Residential | ' | ' | ' | ||
Properties | 3 | 4 | ' | ||
NBV | 8,879,000 | 14,624,000 | ' | ||
Apartment Building [Member] | ' | ' | ' | ||
Residential | ' | ' | ' | ||
Properties | 1 | 1 | ' | ||
NBV | 527,000 | 376,000 | ' | ||
Residential Condominiums [Member] | ' | ' | ' | ||
Residential | ' | ' | ' | ||
Properties | 4 | [1] | 4 | [1] | ' |
NBV | 65,014,000 | [1] | 68,448,000 | [1] | ' |
Residential Fractured Condominiums [Member] | ' | ' | ' | ||
Residential | ' | ' | ' | ||
Properties | 10 | [2] | 10 | [2] | ' |
NBV | 71,588,000 | [2] | 72,292,000 | [2] | ' |
Commercial [Member] | ' | ' | ' | ||
Residential | ' | ' | ' | ||
Properties | 6 | 6 | ' | ||
NBV | 16,555,000 | 25,593,000 | ' | ||
REO Held as Investment [Member] | ' | ' | ' | ||
Residential | ' | ' | ' | ||
Properties | 24 | 25 | ' | ||
NBV | $162,563,000 | $181,333,000 | ' | ||
[1] | Includes units in condominium complexes wholly-owned by the partnership. | ||||
[2] | Includes units in condominium complexes where some units had been sold prior to the partnership's acquisition. |
Note_5_Real_Estate_Owned_REO_D6
Note 5 - Real Estate Owned (REO) (Details) - Earnings/(Loss) from Rental Operations of the Real Estate Owned, Held as Investment (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating expenses, rentals | ' | ' |
Professional services | $590,000 | $1,198,000 |
Other | 68,000 | 143,000 |
Total operating expenses, rentals | 1,182,000 | 3,238,000 |
Depreciation | -43,000 | ' |
Interest on mortgages | 2,263,000 | 2,400,000 |
REO Held as Investment [Member] | REO Held as Investment [Member] | ' | ' |
Operating expenses, rentals | ' | ' |
Other | 225,000 | 280,000 |
Total operating expenses, rentals | 5,281,000 | 6,087,000 |
REO Held as Investment [Member] | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - Earnings/(Loss) from Rental Operations of the Real Estate Owned, Held as Investment [Line Items] | ' | ' |
Rental income | 11,125,000 | 11,557,000 |
Operating expenses, rentals | ' | ' |
Administration and payroll | 1,394,000 | 1,431,000 |
Homeowner association fees | 857,000 | 865,000 |
Professional services | 275,000 | 296,000 |
Utilities and maintenance | 1,223,000 | 1,238,000 |
Advertising and promotions | 136,000 | 128,000 |
Property taxes | 1,171,000 | 1,849,000 |
Net operating income | 5,844,000 | 5,470,000 |
Depreciation | 2,597,000 | 2,328,000 |
Receiver fees | 60,000 | 239,000 |
Rental operations, net | 3,187,000 | 2,903,000 |
Interest on mortgages | 1,683,000 | 2,395,000 |
Rental operation, net, less related mortgage interest | $1,504,000 | $508,000 |
Note_6_Borrowings_Details
Note 6 - Borrowings (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
Non-Rental Property Secured by Mortgage [Member] | Capital Source [Member] | East West Bank [Member] | Chase [Member] | GMAC and Chase [Member] | ||||
Note 6 - Borrowings (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | ' | ' | $16,789,000 | ' | $5,000,000 | $13,681,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 7.50% | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | 5,160,000 | ' |
Sales of Real Estate | ' | ' | ' | 107,000 | ' | ' | ' | ' |
Interest Expense | 2,667,000 | 3,168,000 | ' | 3,000 | ' | ' | ' | ' |
Secured Debt, Other | $48,938,000 | $47,293,000 | ' | ' | ' | ' | ' | $0 |
Note_6_Borrowings_Details_Mort
Note 6 - Borrowings (Details) - Mortgages Payable (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgages Payable [Abstract] | ' | ' |
Principal, January 1 | $47,293 | $43,681 |
New mortgages taken | 5,000 | 5,160 |
Principal repaid | -3,355 | -1,548 |
Principal, December 31 | $48,938 | $47,293 |
Note_6_Borrowings_Details_Mort1
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Note 6 - Borrowings (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Secured debt | $48,938,000 | $47,293,000 |
NorthMarq Capital [Member] | ' | ' |
Note 6 - Borrowings (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Secured debt | 18,170,000 | 18,607,000 |
East West Bank [Member] | ' | ' |
Note 6 - Borrowings (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Secured debt | 13,391,000 | 13,578,000 |
Business Partners [Member] | ' | ' |
Note 6 - Borrowings (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Secured debt | 6,721,000 | 7,100,000 |
Chase [Member] | ' | ' |
Note 6 - Borrowings (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Secured debt | 5,036,000 | 5,136,000 |
Capital Source [Member] | ' | ' |
Note 6 - Borrowings (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Secured debt | 4,952,000 | ' |
First National Bank of Northern California [Member] | ' | ' |
Note 6 - Borrowings (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Secured debt | ' | 2,179,000 |
Wells Fargo Bank [Member] | ' | ' |
Note 6 - Borrowings (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Secured debt | 351,000 | 365,000 |
Wells Fargo Bank (Wachovia Mortgage) [Member] | ' | ' |
Note 6 - Borrowings (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Secured debt | $317,000 | $328,000 |
Note_6_Borrowings_Details_Mort2
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
NorthMarq Capital [Member] | Interest Rate LIBOR Plus 273 [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Yеar End Intеrst Rate | 2.90% | 2.90% | ||
NorthMarq Capital [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Monthly Paymеnt | $119,758 | [1],[2] | $119,758 | [1],[2] |
Mortgagеs Payablе Maturity Datе | 1-Jul-15 | 1-Jul-15 | ||
East West Bank [Member] | Interest Rate Greater of Prime Plus 1 or 550 [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Yеar End Intеrst Rate | 5.50% | 5.50% | ||
East West Bank [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Monthly Paymеnt | 78,283 | [2] | 78,283 | [2] |
Mortgagеs Payablе Maturity Datе | 1-Jun-17 | 1-Jun-17 | ||
Business Partners [Member] | Interest Rate Greater of 5 Year Treasuries Plus 2.33% or 6.53% [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Yеar End Intеrst Rate | 6.53% | 6.53% | ||
Business Partners [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Monthly Paymеnt | 79,155 | [1],[2] | 79,155 | [1],[2] |
Mortgagеs Payablе Maturity Datе | 1-May-15 | 1-May-15 | ||
Chase [Member] | Interest Rate Fixed Until Sep 1 at 3.52% [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Yеar End Intеrst Rate | 3.52% | 3.52% | ||
Chase [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Monthly Paymеnt | 23,228 | 23,228 | ||
Mortgagеs Payablе Maturity Datе | 1-Sep-42 | 1-Sep-42 | ||
Capital Source [Member] | Interest Rate Fixed Until June1 at 3.95% [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Yеar End Intеrst Rate | 3.95% | ' | ||
Capital Source [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Monthly Paymеnt | 42,258 | [1],[2] | ' | |
Mortgagеs Payablе Maturity Datе | 1-Jul-23 | ' | ||
First National Bank of Northern California [Member] | Interest Rate Greater of Primie Plus 2.35% or 5.70% [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Yеar End Intеrst Rate | ' | 5.70% | ||
First National Bank of Northern California [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Monthly Paymеnt | ' | 12,856 | [2] | |
Mortgagеs Payablе Maturity Datе | ' | 1-Nov-16 | ||
Wells Fargo Bank [Member] | Interest Rate LIBOR Plus 2.75% [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Yеar End Intеrst Rate | 2.88% | 2.88% | ||
Wells Fargo Bank [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Monthly Paymеnt | 2,014 | 2,014 | ||
Mortgagеs Payablе Maturity Datе | 1-Oct-32 | 1-Oct-32 | ||
Wells Fargo Bank (Wachovia Mortgage) [Member] | Interest Rate Internal Bank Rate 3.10% [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Yеar End Intеrst Rate | 4.03% | 4.03% | ||
Wells Fargo Bank (Wachovia Mortgage) [Member] | ' | ' | ||
Note 6 - Borrowings (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgagеs Payablе Monthly Paymеnt | $2,174 | $2,174 | ||
Mortgagеs Payablе Maturity Datе | 15-Sep-32 | 15-Sep-32 | ||
[1] | Monthly payments include amounts for various impounds such as property taxes, insurance, and repairs. | |||
[2] | Monthly payments based upon a 30 year amortization, with a balloon payment due at maturity. |
Note_6_Borrowings_Details_Futu
Note 6 - Borrowings (Details) - Future Minimum Payments of Principal on Mortgages (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future Minimum Payments of Principal on Mortgages [Abstract] | ' |
2014 | $1,326 |
2015 | 24,506 |
2016 | 503 |
2017 | 13,012 |
2018 | 292 |
Thereafter | 9,299 |
Total | $48,938 |
Note_7_Fair_Value_Details_Asse
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | $18,100 | $41,443 | ||
REO held for sale | 16,552 | ' | ||
Net of Foreclosed [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | ' | [1],[2] | ' | [1],[2] |
Net of Foreclosed [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | 2,662 | [1],[2] | 1,634 | [1],[2] |
Net of Foreclosed [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | ' | [1],[2] | ' | [1],[2] |
Net of Foreclosed [Member] | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | 2,662 | [1],[2] | 1,634 | [1],[2] |
Net of Foreclosed and Sold [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | ' | [1] | ' | [1] |
Net of Foreclosed and Sold [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | 3,895 | [1] | ' | [1] |
Net of Foreclosed and Sold [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | ' | [1] | ' | [1] |
Net of Foreclosed and Sold [Member] | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | 3,895 | [1] | ' | [1] |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | ' | [1] | ' | [1] |
REO held for sale | ' | ' | [1] | |
REO held as investment | ' | ' | [1],[3] | |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | 9,360 | [1] | 21,883 | [1] |
REO held for sale | 16,552 | ' | [1] | |
REO held as investment | 4,868 | 12,022 | [1],[3] | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | ' | [1] | ' | [1] |
REO held for sale | ' | ' | [1] | |
REO held as investment | 1,551 | 1,603 | [1],[3] | |
Estimate of Fair Value Measurement [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with allowance, net | 9,360 | [1] | 21,883 | [1] |
REO held for sale | 16,552 | ' | [1] | |
REO held as investment | $6,419 | $13,625 | [1],[3] | |
[1] | Sum of principal, advances, interest accrued, less the related specific allowance for financial reporting purposes. | |||
[2] | Excludes any properties included in the REO lines above. | |||
[3] | Only includes properties with a valuation change during the year. |
Note_8_Commitments_and_Conting1
Note 8 - Commitments and Contingencies, Other Than Loan and REO Commitments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Note 8 - Commitments and Contingencies, Other Than Loan and REO Commitments (Details) [Line Items] | ' | ' | ' |
Real Estate Investment Property, Net | $162,563,000 | $181,333,000 | $161,402,000 |
Real Estate Investment Property, Remaining Construction Costs | 300,000 | ' | ' |
In Construction [Member] | ' | ' | ' |
Note 8 - Commitments and Contingencies, Other Than Loan and REO Commitments (Details) [Line Items] | ' | ' | ' |
Real Estate Investment Property, Net | $5,776,000 | ' | ' |