The Coronavirus continues to spread across the United States and the world. All business sector are being affected directly or indirectly. The Coronavirus Impact on S&D mortgages is no different. However, unlike the other business sectors, the Scratch and Dent niche has been affected in a positive way. For mortgage originators as the Fed lowered rates to all-time lows. This change has resulted in a seller’s market as scratch and dent prices have improved across the board. Whatever the reason a mortgage provider is in need of liquidating a scratch and dent loan, the bids available are reaching all-time highs.
Mortgage Companies should not only focus on new originations due to low rate environment, but should also review their outstanding non-saleable loans. They also have an opportunity to take advantage of mitigating their losses on the secondary market. If mortgage providers prioritize their scratch and dent loans, they can save thousands of dollars due to higher prices.
As a result, Right House Capital recommends their clients to take advantage of this selling opportunity. Right now the market could become inundated with loans as sellers begin to liquidate loans on the secondary market. As we have seen already, the Coronavirus impact on S&D mortgages can change quickly.
For any type of loan in need of liquidation, Right House Capital is here to support your needs.
For more information or if you have any problem loans you want to liquidate today, contact Andrew Zale.