A South Florida-based private equity firm U.S. Debt Ventures (USDV) bought $500 million worth of bad home loans on Monday, April 18th, from around the country.
In purchasing about 7,000 non-performing residential mortgages–with 733 of those loans in Florida alone–the firm expects to work with all the affected borrowers on loan modifications. USDV’s chief executive Todd Billings has also said that the company’s focus is to “optimize returns for investors,” while, at the same time, clearing up the credit of borrowers using creative solutions.
According to USDV, those 7,000 loans consist of first, second, and third tier liens. USDV has not released who it bought the loans from or the price paid for them, but the private equity firm has said that they purchased the bad home loans from one of the top five lenders in the nation.