New Century Financial, the bankrupt Irvine-based subprime lender, filed a liquidation plan that fails to say how it will repay $35 billion claimed by creditors, the Associated Press reports.
Documents filed in U.S. bankruptcy court in Delaware on Saturday contained blanks where the company was supposed to say how much it would repay creditors. New Century raised $235 million by selling assets.
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so who takes over the mort loans they have on the books? are they sold, or are the leins wiped? Or do the investors take over the properties.
I am assuming that the loans are sold to another mort company but what if no other company wants to buy them?
“I am assuming that the loans are sold to another mort company but what if no other company wants to buy them?”
the loans are bought by an investment company for pennies on the dollar and then serviced accordingly.