Jon Ihle

Subprime mortgages written by failed and closed lenders are being offered to distressed debt investors for as little as 30c in the euro as financial backers who got burned by the credit crunch try to exit the market with at least some of their investment intact.

Several specialist lenders which have withdrawn their products from the Irish market are trying to sell nearly €500m in loans, but the sellers cannot offload the assets even at steep discounts, according to those who have been approached.

One loan book – €20m in subprime loans from Fresh Mortgages, a short-lived lender which closed for new business in late 2007 – has been on the market since November of last year with no takers.

Original Article