In Before the Flow: How Mortgage NPLs Are Evaluated, Part 2, David from Indemo continues the conversation with Ilja Hagins, Managing Director of Tamarindo Vector, Indemo’s Spain-side partner, about what happens before a discounted debt investment opportunity reaches the Indemo platform.
Part 1 focused on how mortgage NPL opportunities first reach professional buyers, what is reviewed during the first screening, and why not every opportunity makes it through the selection process.
Part 2 goes deeper into the next layer of evaluation: how collateral value is assessed, how purchase prices are negotiated, why legal stage matters, and how potential recovery routes are considered before an NPL becomes an investment opportunity on Indemo.
What this video is about
When investors look at an opportunity on Indemo, they see key figures such as the property appraisal, debt amount, PTV, PTD, legal stage, and expected return.
But before those figures appear on the platform, professional buyers need to understand the full picture behind the case.
In the video, Ilja explains that collateral valuation is not based on one number alone. Tamarindo considers professional appraisal work, market transaction data, internal experience, and a conservative view of the property’s condition, especially because the inside of the property is usually not accessible before possession. Pasted text
This means that the price investors see is intended to reflect a realistic approach, taking into account the possibility that the property condition may not be perfect. If the condition later turns out to be better than expected, this can reduce future costs and may improve the final recovery outcome. Pasted text
In the video, we discuss:
- How Tamarindo evaluates collateral value before purchase
- Why property appraisals are approached conservatively
- How market transaction data supports valuation
- How professional buyers negotiate purchase prices with banks or funds
- Why the lowest figure between debt amount and market value matters
- How legal stage affects the price Tamarindo is willing to pay
- Why a very large discount can sometimes be a warning sign
- How recovery routes are considered before purchase
- What happens after Tamarindo acquires an NPL
- Why legal recovery work and debtor communication often happen in parallel
- Why Indemo performs another review before an acquired NPL becomes available to investors
Practical case: debt amount vs market value
One important topic in the video is how Tamarindo thinks about the relationship between the debt amount and the property’s market value.
These two figures are not always the same.
Sometimes the property may be worth more than the outstanding debt. In that case, the debt amount may become the more relevant starting point for negotiation, because a debtor could theoretically repay the debt amount, and the buyer still needs enough margin to cover costs, legal work, and the expected investor return.
In other cases, the debt amount may be much higher than the market value of the property. In that situation, a large discount to the debt amount may look attractive on paper, but the real recovery potential is still connected to the value of the collateral. Ilja explains that Tamarindo therefore looks carefully at the lower of the two figures when deciding what price can make sense. Pasted text
This helps explain why two opportunities on Indemo can look different.
One opportunity may have a lower PTD but a higher PTV. Another may have a stronger collateral margin but require more time or legal progress. A professional evaluation needs to consider the full situation, including collateral value, debt amount, legal stage, expected costs, liquidity, and possible recovery strategy.
Why legal stage matters
The current legal stage is another major factor in the evaluation.
A case that is closer to auction may support a higher purchase price because part of the legal journey has already been completed. A case at an earlier stage may require a larger discount because more time, cost, and procedural progress may still be needed before recovery. Pasted text
Ilja also explains that an unusually large discount is not automatically positive. If an opportunity looks “too cheap,” Tamarindo investigates why. There may be legal, collateral, location, neighbor, land register, or other case-specific issues that need to be understood before making a decision. Pasted text
Recovery strategy before and after purchase
Part 2 also looks at how Tamarindo thinks about possible recovery routes.
The model is usually built around a conservative, longer scenario: taking possession and selling the property on the market. However, if the property is in a liquid area, there may also be a higher chance of an out-of-court agreement or a third-party purchase at auction. Pasted text
After Tamarindo purchases an NPL, the work continues. Documentation is provided to the legal team, the debtor is informed that Tamarindo is the new creditor, and different recovery efforts begin in parallel. These can include legal follow-up, debtor communication, local market checks, contact with real estate agencies, and attempts to understand the practical options around the collateral. Pasted text
Ilja also explains that not every NPL acquired by Tamarindo automatically becomes available on Indemo. Once Tamarindo has completed its work and acquired a portfolio, Indemo professionals perform their own review before deciding which opportunities may be suitable for Indemo investors. Pasted text
Watch the full video
Continue learning
Watch Before the Flow: How Mortgage NPLs Are Evaluated, Part 2 to better understand how professional partners assess collateral value, negotiate pricing, consider legal stage, and prepare recovery strategies before an opportunity reaches Indemo.
Together with Part 1 and the Flow Stages Step-by-Step Guide, this video helps explain the full journey around an Indemo opportunity: what is reviewed before listing, what happens once a case is selected, and why mortgage NPL investing requires both legal knowledge and real estate experience.
This content is a marketing communication. It shall not be treated as investment advice, independent research or offer, recommendation or invitation to invest in the investment opportunities referred to herein. The content is not aimed at promoting services or products to persons based in jurisdictions where the distribution of said information would be illegal.
Investing in financial instruments involves risk, and there’s no guarantee that investors will get back invested capital. Moreover, past performance does not guarantee future returns. Indemo SIA shall not be responsible for any direct or indirect loss from using the provided information.