In January 2012, Carrington Holding Co. was so bullish on buying and renting out foreclosed single-family homes that it obtained $450 million in financing to fund a buying spree of vacant real-estate owned (REO) properties from banks and mortgage servicers.

But less than 18 months later, the Santa Ana, Calif.-based firm — one of the nation's largest players in single-family property management, lending and servicing — decided it was time to throw in the towel. The market had lost its lucrative yields and had become oversaturated with hundreds of institutional investors. After witnessing the fast rise in home prices this year and the disappearance of REO discounts from banks in the reheated housing markets of California, Nevada and Florida, Carrington called it quits this past May.

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