In an early sign that investors are starting to pounce on the billions of dollars of troubled land and construction loans that banks are looking to unload, a venture headed by LandCap Partners is buying $40 million of such assets from Wachovia Corp.


The deal allows Wachovia, one of the nation's largest construction lenders, to move the troubled loans off its books and raise capital. LandCap will service the loans and foreclose on the troubled debt if deals can't be worked out with distressed borrowers. The venture plans to sell foreclosed property to other home builders.

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