Portfolio valuation guide
Direct answer
A buyer grades delinquent BHPH accounts by looking beyond a single days-past-due number. Important factors include the customer's last payment, historical payment pattern, amount collected, remaining balance, collateral, title and contract quality, repossession status, bankruptcy or dispute flags, and the dealer's servicing records.
Start with consistent delinquency buckets
Separate accounts into current, 1–30 days past due, 31–60, 61–90, and more than 90 days past due, or use the buyer's requested buckets. Include the calculation date because the same account can move from one bucket to another as time passes.
Days past due should agree with the next due date, paid-through date, and servicing records. If those fields conflict, explain which field controls in your DMS.
Review payment behavior over time
A late account that has made regular partial payments can look different from an account with no recent contact or payment. Buyers commonly examine:
- Date and amount of the most recent payment
- Number of payments made and total dollars collected
- Frequency of missed, partial, late, or reversed payments
- Extensions, modifications, promises to pay, and cure history
- Time since origination and remaining term
Collateral and documentation still matter
Vehicle value, condition, mileage, location, insurance status, title status, and lien perfection can materially affect the review of a delinquent account. Complete contracts and payment records make it easier to understand and enforce the receivable.
Delinquent does not mean charged off, repossessed, or bankrupt. Give each status its own field so the buyer does not have to infer it from days past due.
Separate important account statuses
| Status | Helpful information |
|---|---|
| Late but active | Last payment, contact history, promise-to-pay notes, current location |
| Repossession assigned | Assignment date, recovery status, vehicle condition and location |
| Vehicle recovered | Recovery date, condition, storage, intended disposition |
| Bankruptcy | Chapter, filing status, stay or plan information available to the dealer |
| Charged off or deficiency | Charge-off date, remaining balance, judgment or collection status |
Prepare delinquent accounts for a fair review
- Use a current calculation date and refresh the tape before final pricing.
- Include last payment date and amount, not only days past due.
- Separate active delinquency from repossession, bankruptcy, and charge-off.
- Explain unusual balances, deferments, and system conversions.
- Provide complete information for the whole pool rather than omitting weak accounts without explanation.
Frequently asked questions
Will a buyer consider a portfolio containing delinquent accounts?
Yes. Mixed-performance portfolios can be reviewed. Delinquency is reflected in risk and value, and eligibility depends on the complete account and transaction details.
Should I remove delinquent accounts before requesting a grade?
Usually it is better to identify them accurately and let the buyer discuss the pool. Removing them without explanation can make the totals difficult to reconcile.
Is days past due enough to grade an account?
No. It is an important starting field, but recent payment behavior, collateral, documentation, status, and remaining economics also matter.
Sources and related resources
- What makes a BHPH portfolio valuable
- How to prepare BHPH loan data for sale
- Sell a full BHPH portfolio
Software menus and reports can change. This guide was last checked on September 26, 2026.