RTC Plans to Sell $100 Million Of Loans in Denver Next Month
WASHINGTON -- The Resolution Trust Corp. is set to auction off a whopping $100 million in nonperforming loans, mainly residential mortgages, on Dec. 4 in Denver.
It will be the bailout agency's fourth loan auction, and its biggest.
The 5,500 loans will be bundled in 47 packages. Due diligence on the bundles began this week and will continue through Dec. 3.
For the first time, the RTC will offer loans as large as $250,000. In previous auctions, the loans had balances of less than $50,000.
At its first such auction in Chicago in June, the RTC sold $60 million in nonperforming loans for 58 cents on the dollar.
About 40% of the loans went to banks and thrifts in the area, according to Joel D. Zegart, president of the auction company JBS & Associates Inc.
Mr. Zegert said he expects that 60 to 100 companies will inspect the loan packages.
Past buyers have included First Boston Corp. and GE Capital Corp., he said.
Bidders planning to buy $1 million in loans must bring a certified check for $25,000, according to Mr. Zegert.
To buy more than $10 million in loans, a buyer must bring a certified check for $200,000.