Transfer of secured loan - contract

DevCoder

Toxic debt loans (which were secured) were offloaded by the ton in 2008

It's all about risk and also the creditors liquidity ratios. Sometimes it is better to offload a secured debt to bring your loan book down even though you have pledged collateral which should contra the liability incurred by the financial institution.

Do you think you could call in the collateral successfully and would the cost of doing so be worth it against the amount outstanding is the killer question for a loan book.

Whilst the debt would be transferred, with secured debt the assignee would also have to legally register the interest in the secured collateral with the relevant authorities in my opinion (unless the assignee is under the legal entity umbrella of the originating institution).

Thrugelmir

keftin wrote: »

Lots of statements on forums about secured/unsecured loans being 'sold on', but after extensive searching I've yet to see anyone produce any evidence detailing the actual 'sale' of an individual debt.

Am awaiting a response to my SAR but I'd be interested to know if anyone has actually seen details of the contractual 'sale' and transfer of their (or another's) debt from one company to another?

Individual debts aren't sold on. Loans will be packaged into bundles and priced as such.