Posted by John Behle on October 27, 1998 at 18:06:46:
I’ve done bids on FDIC paper, but never gotten one. I am not willing to pay the prices that they go for. Collection companies usually end up with the loan packages and pay higher prices because they are set up to hammer payments out of people. I have friends that have gotten some good bargains, but most come up short of the price needed to get a package.
The packages also run in the hundreds of thousands and few small investors have the capital. Some require 10% of your bid amount in a cash deposit also.
There are people out there that rave about the fabulous results of working with these packages, but most of it is hype to sell a course. Some are even still raving about the RTC bargains even though the RTC no longer exists!
WARNING. Steer very clear of some of the packages of loans out there that are sold at some extremely low prices. If you get something from the FDIC, that paper hasn’t been worked much. Yet, there are packages out there that originally were from the FDIC or bank portolios that have been worked to death. Anything that was possibly collectable was picked clean and now they are trying to peddle the remaining refuse.