FDIC Auctions Record Levels of Bank Debt
Plano/Dallas, TX May 9, 2009 The Federal Deposit Insurance Corporation, FDIC, is auctioning the debt of an ever increasing number of collapsed banks. One of the ways that the FDIC recovers money to make good on the depositers money is by auctioning off the debt of the bank. According to Cliff Robertson, Founder of the US Investor Center, says “We are able to buy debt from the FDIC at record rates and it is cheap. We have been able to buy debt at between .02 and .15 cents on the dollar for the more challenging debt.”
Now this type of acquisition is not for the faint of heart. Often times a buyer of this debt has to find the person through skip tracing and other means. Now not all the debt is challenging but the higher the quality of the debt the more you are going to pay for it. Here’s an example - Fannie Mae performing debt is on sale for 65-70% of the unpaid principal balance.
There are many other types of debt as well from residential, student loan, credit card, commercial and more. Wilbur Ross, noted Steel Man, recently completed a purchase of 186,000 loans from Citi-Bank. Forbes recently reported that several mutual fund companies are expanding their ability to buy debt. A noted commentator on NPR was quated as saying"If you are not buying debt right now you are missing out on one of the greatest income opportunities in recent history. Beal Bank in Dallas, Texas was founded during the Thrift Collapse of the late 80’s by buying debt and now owns a huge stake in the Airline debt and generates 70+million a year in revenue from the servicing of that debt.
According to Mr. Cliff Robertson, “There is risk in buyng debt and many pitfalls the average person can fall into so buyer be aware.” There are a few companies that are offering investors/buyers opportunities at Joint Ventures with them and have put together complete turnkey operations to make the process simple. One of those companies in particular is HP Debt Exchange. HP Debt Exchange has a complete turnkey operation for the potential debt buyer and its making some pretty solid returns for the buyers.
The US Investor Center is an investor run organization that is setup to provide quality information, education and networking for the investor public. Go to www.usinvestorcenter.com for more information.
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- US Investor Center
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