Distressed Loans
Distressed Loans are loans that the borrower does not have the financial capacity to pay according to its terms, that present a high probability of loss to the lender, and that may have certain characteristics, such as being delinquent, in foreclosure, or acquired by another entity.
Borrowers can become distressed due to various reasons, including business failure or loss of income or an inability to understand the terms of their loan. Banks, Credit Unions and Lenders most often will offer the borrowers common strategies such as forbearance, reinstatement, and/or loan modifications to avoid defaulting on a loan.
As with NPLs and S&D loans, if your loan portfolio has a higher volume of distressed loans than you prefer, simply contact Royal American Financial who can offer you their expertise at locating an investor interested in buying your distressed loans. Liquidating your portfolio of distressed loans will afford you increased income and reduced risk of loss.
Contact Royal American Financial today to discuss your options!