Posted by Michael Morrongiello on December 11, 2008 at 18:15:01:
THe seller is KOOKOO…
The secondary market for loans is in trouble these days and HARD MONEY, asset based loans which were made with little regard to income, credit, and DTI qualifying are also going along for the crazy ride.
Its unrealistic for this lender to expect 95% for his loans. He will have to discount them more severely.
Sure, he might get lucky selling off one or two, here and there to some retiree that has some money parked in a CD, under their mattress, etc. but for the most part large pools of these loans are trading for< less
Without knowing more about payor credit, credit scores, types of collateral, geographic locations, performance, and the actual Note interest rates, etc. its hard to put a # or pricing on such a package.
Somewhere in the 80% to 85% on the dollar range might be realistic.
Thats the price he might have to pay IF he wants liquidity.
Best to your success;
Michael Morrongiello