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Product · Private Treaty Sales

Private Treaty SalesRecover value before the auction cliff

Most NPL recovery value is lost at auction, not before it. Private Treaty Sales connects lenders with national buyers before statutory escalation — recovering fair market value, maintaining borrower consent, and closing cases faster than the forced-sale path.

Verified listingsOpen negotiationLender financingConsent-recorded
Capabilities

What it does.

  • Verified listings

    Every asset originates from a regulated lender with documented ownership and borrower consent on file.

  • Open negotiation

    Structured bidding and offer tools surface fair market value while protecting borrower rights at every step.

  • Integrated financing

    Buyers can request financing directly from the originating lender — expanding the pool of credible counterparties.

  • Consent & compliance

    Borrower consent is captured, versioned and tracked. Every offer and counter-offer is logged immutably.

  • Settlement automation

    Once an offer is accepted, sale agreements are generated and the DistressIT case is updated automatically.

  • National reach

    Move beyond local buyer pools. Reach verified buyers across the country with provenance and trust pre-established.

Why it matters

The difference is money, not process.

The difference between private treaty and forced auction is not process — it is money. A lender who closes in Substandard through private treaty recovers fair market value and holds provisions at 20%. The same case escalated to Doubtful requires 100% provisioning on the net balance and typically realises 60–75 cents on the shilling at statutory auction. Private Treaty Sales makes the better path operationally viable.

The recovery waterfall

Every case that reaches auction has already left value on the table.

Private treaty
Statutory auction
Recovery rate
85–95% of market value
60–75% of market value
Buyer pool
Verified national buyers
Local pool, thin competition
Financing
Lender-integrated financing available
Cash buyers only
Borrower rights
Consent captured, appeal pathway open
Statutory process, limited recourse
Timeline
Agreed between parties
Statutory calendar, fixed
Audit trail
Immutable, examination-ready
Dispersed across agents and files
Net outcome
More recovered
before the provision cliff
Value destroyed
forced-sale discount baked in