this post was submitted on 24 Jan 2025
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Only the banks know their exact reasons for trying to sell off these loans and they will most certainly not say because they don't want to scare off potential buyers. It could be that the banks need money right now and don't want to wait for the borrower to repay the loan, or it could be that the banks are having doubts about the borrower's ability to pay back the loan at all.
Whatever their reasons, the banks are currently willing to take a flat 5-10% loss in addition to the ongoing interest in order to get their cash back immediately and offload the risk to someone else.