Recently heard of a church purchasing $3.3 million in resident debt for 15k and then cancelling all of it.
In: 9
Like any commodity, it’s worth what someone is willing to pay for it.
If you owe the bank $10m and can’t make any payments at all, interest is causing the amount owed to go up and up and up – well, it’s getting worse but no matter how bad it gets, the bank is still ending up with nothing.
If they can sell the debt even for cents on the dollar, they recoup *something*. They’ll do this if they conclude that getting something is better than nothing and making the debt someone else’s problem.
Latest Answers