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Scratch And Dent Loans

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Client gets new mortgage after failing to pay 2nd for eight years – What I think: This loan approval was more than a pleasant surprise. Those lenders typically sell the non-performing seconds for pennies on the dollar to what is known as “scratch-and-dent”.

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PDF How To Avoid A Liquidity Crisis By Selling Your Scratch And. – How To Avoid A Liquidity Crisis By Selling Your Scratch And Dent Loans M ortgage bankers might not like to admit it, but, as with many volume-driven busi-nesses, mistakes, sometimes referred to as "scratch and dent" loans, are bound to occur. Such mistakes often ultimately pre-vent the sale of certain loans to your primary investor base.

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