Posted by David Butler on February 19, 2002 at 12:34:42:
Hmmmm… in all honesty, I’ve seen a lot of weak note offerings, but none like that! MH paper is tough enough, especially in these times - without buying default paper on purpose.
Two thoughts… if the equity is sizable, and the payor profiles show any redeeming qualities, AND the space rents are current, some note buyers might look at buying at deep discounts and restructuring the notes (though I probably wouldn’t).
Or, a skilled Lonnie dealer might be willing to look at the paper as a form of “bottom-feeding” - i.e. a “back-door” to obtaining property at distressed prices, by purchasing the paper for cents on the dollar, and following through with repo and resale.
A great deal depends on the complete circumstances behind the paper, and the economics of the location of the collateral properties!
Hope that helps, such as it is - and best wishes for finding a solution here!
David P. Butler