A $55 million portfolio of nonperforming commercial mortgages and real estate owned is being offered for sale by Mission Capital Advisors LLC, according to an announcement Tuesday. The loans, divided into 17 single asset pools, are being offered for sale individually or as a portfolio. Initial bids are being accepted until Aug. 21, while final bids are due by Sept. 11.

The loans are secured by condominium, retail, office, mixed-use and single family properties in Florida, Georgia, Nevada, North Carolina, South Carolina, Tennessee and Virginia. Some loans are secured by commercial and residential development land.

A Dubai private investment group has committed to invest $20 million in Diversified Mortgage Workout Corp., a press release yesterday said. The funds will be used to acquire $100 million in subprime mortgages discounted by 20 percent.

“The company’s staff will review all offers and acquire the portfolio with the best return on investment,” White Plains, N.Y.-based Diversified said in the statement.

AmStar Financial Services Inc. announced last week that it plans to launch a warehouse facility to fund FHA correspondents’ reverse mortgage loans. The Pembroke Pines, Fla.-based company said it acquired a Florida mortgage lender’s license during the second quarter which will enable it to retain servicing rights on loans it purchases.

“Where do [correspondent lenders] go to sell their loans for the highest yield, so they can continue in business providing this valuable service?” AmStar rhetorically asks on its Web site. “We are committed to creating and managing a premier warehouse facility, designed to service small- and mid-sized correspondent lenders, limited to HECM production only, subject to superior quality control and customer service.”

Ocwen Financial Corp. plans to use its cost structure and strong delinquency curing ability to acquire servicing portfolios. The firm said its cost to service non-performing loans is less than half of the industry average.

“With our liquidity position strengthened, we intend to pursue the acquisition of servicing portfolios in conjunction with private-equity firms,” the Palm Beach, Fla.-based company said in its second-quarter earnings report last week. “This will enable Ocwen to continue to pursue an asset light strategy.”

WMD Capital Markets recently reported the acquisition of $65 million in Massachusetts mortgages from Fremont Investment & Loan. The deal was made in subject to a preliminary injunction issued against Fremont as part of an affordable loan modification and foreclosure prevention agreement with Massachusetts’ attorney general.

Oxford Funding Corp. continues to tout how great its business model is. The Houston-based company acquires discounted mortgage portfolios then restructures the individual loans and resells them on the secondary market.

“The market has been hammered by bad loans but we take pride in a hands-on approach to getting borrowers back in the market — be that through new loan terms or some debt forgiveness — we can help turnaround a dim outlook and turn a profit at the same time,” Oxford Chief Executive Officer Ron Redd said in the latest of many press releases.

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: mtgsam@aol.com