New York Firm Wins Bid on Delinquent Second Lien Package

DreamBuilder Investments LLC has purchased a $173 million package of nonperforming second liens after the initial winning bidder on the deal failed to close. According Jaymes Financial of Virginia, which brokered the transaction, the privately held DreamBuilder paid less than one penny on the dollar for the loans, which include both secured and unsecured credits. The seller was The Cadle Co., Newton Falls, Ohio. A Texas company had won the bid a few weeks back but could not close on the transaction, said Andy James, a principal in Jaymes Financial. Several weeks back the privately held DreamBuilder bought a $400 million package of nonperforming seconds that belonged to National City Corp., Cleveland. The seller was PNC Financial Services, Pittsburgh, which bought NatCity late last year. No price was disclosed on the NatCity deal. DreamBuilder has been buying nonperforming second liens since 2002.