If you’re buying or selling non performing notes I’m willing to bet you spend a lot of time looking for product…
Hopefully that time is spent talking to real sellers, like banks, and not trawling the forums where every Tom, Dick, and Harry is peddling some pool of loans with a tape they’ve never seen, a seller they’ve never talked to, and a broker chain as long as… well pretty long anyway.
People who are actually in the business who are actually doing deals know that you need direct relationships with real sellers.
Banks are increasingly interested in selling notes (that is the word on the street and the data bears that out). One reason for the new interest is the foreclosure mishaps that we’ve heard so much about. If a bank sells the note they can avoid missteps in the foreclosure process, title problems, and management headaches and losses that are inevitable with certain REO
Building relationships with sellers, especially banks, takes time. Why not spend that time with the best qualified prospects? But how do you know who the best qualified prospects are? I’d argue that if a bank sold non accrual assets last quarter then it is a process that they’re familiar with, that they’re comfortable with, they probably have a system and/or personnel in place to process the whole thing. This is not to say that if they didn’t sell last quarter that they won’t sell this quarter, but transaction history is a pretty good indicator.
We’re pleased to announce that we’ve just added ‘Nonaccrual assets sold during the quarter‘ to every bank report. Members should look for an update soon in the BankProspector User Guide. This figure shows, in total dollars, how much, if any, nonaccrual was sold during the course of the quarter.
Click on the image in the post above to see where you’ll find Nonaccrual Assets Sold on the BankProspector individual bank records.
To learn how you can get this type of data for free, sign up for the Bank Prospecting Email Mini Course