Analysis: ResCap bidders line up for rare subprime mortgage sale

Instead of being forced to hold a fire sale, ResCap has lined up high-profile bidders, including Fortress Investment Group's Nationstar Holdings and Warren Buffett's Berkshire Hathaway Inc, for an October 23 auction that could raise the money it needs to repay creditors. The key asset on the block is ResCap's mortgage loan servicing and loan origination business.

The sale is expected to raise at least $4 billion, which will then become part of a pool of money used to pay back Ally and other investors, including those who bought mortgage-backed securities tied to ResCap home loans that went bad.

The business is seen as attractive as the housing market has slowly started to recover, and few similar businesses are up for sale. Another plus for buyers is the opportunity to buy the business without its accompanying liabilities, thanks to bankruptcy laws that leave those liabilities behind in a trust.

... it's less clear if waiting was good for its investors. While the expected proceeds from the sale are higher than they would have been during the financial crisis, it has more debt to pay back.