Bankrupt mortgage lender People’s Choice Home Loan Inc. is looking to auction off the subprime home loans it owns, the company said in court filings this week.
While the company hopes to resume operations, it now believes it is a good idea to complete the marketing of the assets, the Associated Press reported on Wednesday.
People’s Choice filed a petition for Chapter 11 bankruptcy protection last week in Santa Ana. The company’s petition lists assets and liabilities both in excess of $100 million, and counts between 10,000 to 25,000 creditors.
The company originated more than $5 billion in loans each of the past two years.
The company’s also asked the court to give it permission to retain Friedman, Billings, Ramsey & Co. to serve as its investment adviser during the bankruptcy.
A hearing on the matters is expected next Monday.
