Pursuits
Cerberus Acquires $5.7 Billion of Mortgages Shunned by Banks
- Investment firm buys U.S. performing loans made from 2005-2007
- Focus is on modified mortgages with long record of payments
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If you have a modified mortgage made around the time of the U.S. housing market’s peak, Cerberus Capital Management probably wants to buy it.
The investment firm has acquired residential loans with an unpaid balance of more than $5.7 billion as of the end of July, according to a marketing document obtained by Bloomberg. Most were mortgages issued from 2005 to 2007 and then modified. The company is seeking to increase the purchases, which are tied to homeowners who are less likely to default because they’ve been making regular payments for several years.