A portfolio of nonperforming mortgages has traded hands for 40 cents on the dollar.
Composite Solutions Inc. has agreed to purchase more than 100 nonperforming pre-foreclosure loans with notes in excess of $6.06 million for just 40 percent of the aggregate value, according to an announcement today.
The value of the properties securing the first mortgages is more than $8.5 million, the Newport Beach, Calif.-based company said. The portfolio loan-to-value is 30 percent.
"We believe this particular deal, while exciting, only represents the tip of the iceberg in opportunities," Composite Chief Executive Officer Walter Wright said in the statement. "This illustrates the potential of an uncertain market."
Composite, which operates online at www.csicput.com, said it invests in real estate related investments which it can sell directly to the public.
"Ideally, we will be able to help get the notes performing again," Wright added. "However, each property that goes to foreclosure also represents a substantial potential gain for us."