$292 Million in Non-Performing Mortgages Up For Sale

Because so many HW readers in the distressed mortgage space are looking for sellers: DebtX, a large full-service loan sale advisor, said Wednesday that it will look to manage the sale of more than $292 million in non-performing residential real estate loans next month. The portfolio will be offered in 19 separate pools and will bid on Sept. 18, according to a company statement. The loans were originally made by a commercial bank as portfolio loans, primarily in 2006; of course, the bank originating the loans was not disclosed. Per DebtX, the portfolio contains the following concentrations: $100 million in Florida, $40 million in California, $26 million in Massachusetts, $16 million in Arizona and $16 million in Nevada. The loans are 95 percent adjustable rate, and 95 percent of the properties are owner-occupied. “DebtX is expecting strong interest from local investors because of the manageable size and geographic concentration of the portfolio,” said DebtX CEO Kingsley Greenland, who said that a growing number of financial institutions are looking at using the company’s online marketplace for distressed debt as a way to broker sales of chunks of a loan portfolio. Kingsley said that DebtX maintains more than 4,000 registered and approved investors and approximately 300 financial institutions selling through its exchange; the company historically has had a strong presence in the sale of C&I and commercial real estate debt, but like many, is seeing growing interest in using its platform to manage the sale of distressed residential real estate debt. The portfolio sale is small relative to larger asset sales that we know are being negotiated out there right now; the portfolio up for bid likely represents a regional or community bank’s residential loans, sources told HW. DebtX has a strong presence with community banks given its C&I debt transaction platform, various sources told HW. For more information, visit http://www.debtx.com.