Pricing expectations on assets in advanced foreclosure state ​

[Michael Vaughn]

I have recently to looks into more and more deals which includes loans currently in advanced foreclosure status, for example , anything from a few hearings done to FC sale date set and it is 30-60 days.

How do you change your price offer in the bid stage to address that, given everything else equal? For example given a mortgage loan where the debt is 60% of the house value (so we are covered in equity 100%), borrower has not paid in years. in general I would have offered anywhere between 50-65c on the dollar on such a loan, depending on a few other factors, how should that change given the asset is very advanced in the fc process? (one would even say why they sell it if the the sale date is so close). Keep in mind this is before doing any due diligence, so we don't know exactly all the details.