Loan Sales Unsuccessful - Now REO ?

Recently a couple of my bank clients have been attempting to sell their default loan portfolios to groups of investors.  Many of these portfolios are in the 3-8 million range.  The assets are mostly vacant, mostly former rental properties either single family, double or four-plex.  Most loans were originated 12-24 months ago. A majority were 90+ late with only about 20% or so less than 90.  All are located in Columbus Ohio or Dayton.

Sellers were hoping for offers close to 60% of loan balance.  What they received were offers going from 18% to 27%.  Maybe the offering wasn't promoted aggressively?

I don't know why I am surprised, but I am.  The offers were not accepted although I think the parties are still negotiating.  With that big of a spread I'm not sure where that will go.

Wonder what these properties are going to eventually be worth when I get them as REO?

Soon to be listed on www.gryphonreo.com, another 50 ++ properties.  Come n git em !!!