Key Takeaways
- Define the asset, objective, scope, and decision timeline before outreach.
- Keep data, documentation, ownership, servicing, and material exceptions connected.
- Compare complete economics and execution terms rather than a headline number alone.
- Document responsibilities, transfer controls, and the next review step.
The seller’s playbook
- Define the objective and alternatives to sale.
- Reconcile the eligible population and balances.
- Prepare the tape, dictionary, documents, and exceptions.
- Establish buyer criteria, access rules, and bid instructions.
- Compare proposals and negotiate the complete terms.
- Reconcile settlement, delivery, and servicing responsibilities.
Start with charge-off preparation, the NPL sale process, or mortgage note sales, depending on the asset.
The buyer’s playbook
- Define asset, geography, size, status, and return parameters.
- Confirm capital, servicing, licensing where required, and data-security readiness.
- Evaluate the offered pool and independent diligence evidence.
- Model recoveries, costs, timing, and downside outcomes.
- Submit a proposal with explicit assumptions and conditions.
- Complete documents, settlement, boarding, and monitoring.
Use the buyer protocol and debt portfolio acquisition guide to develop an acquisition plan. Access to a process does not guarantee that suitable inventory will be available or that a bid will be accepted.
The advisor’s role
An advisor can help organize a process, coordinate information, identify appropriate participants, and compare terms within the agreed engagement. Define the scope, compensation, conflicts, exclusivity, responsibilities, and limits. Legal, tax, accounting, and independent underwriting decisions remain with the appropriate professionals and decision-makers.
Use the right valuation question
Ask what net cash the asset may produce, when it may arrive, what it costs to obtain, and what evidence supports the forecast. UPB, collateral value, coupon, purchase price, and realized yield answer different questions.
The note calculator below is a transparent scheduled-payment scenario. For a distressed pool, use a recovery model such as the framework in portfolio valuation methodology.
Choose the process deliberately
Private outreach, a managed competitive process, and broader distribution have different tradeoffs. Evaluate recipient controls and execution discipline in addition to reach. No channel is the only professional choice for every asset.
Discounted payment scenario
Model level end-of-month payments and an optional additional balloon at the final month. Enter your own effective annual discount rate. All amounts are in USD.
The monthly rate equals (1 + annual rate)^(1/12) − 1. The balloon is additional to the final regular payment. The calculation assumes every entered payment occurs on schedule and does not model default, prepayment, collateral recovery, taxes, or unentered expenses. It is not a valuation or offer.
This page provides general information for institutional and commercial readers. It is not legal, tax, accounting, investment, or transaction-specific advice. Requirements and outcomes depend on the assets, parties, jurisdictions, and agreements. Obtain appropriate professional advice for a proposed transaction.