Let me try to add some color. These type of distressed sales of distressed properties and mortgages are occuring all of the time as different institutions have to delever to meet other goals. The sellers generally hold auctions through investment banks or web-based platforms where qualified bidders gain access to the due diligence on each loan/property. The participants in these auctions include large investment partnerships that are sponsored by different advisors and formed specifically for the purpose of buying these portfolios. IVR and Ross's different entities are likely participants in these partnerships. They may be limited partners, they may have provided equity or debt.
Don't draw the wrong conclusion about the statement that the portfolio was sold at a 25% discount. These are competitive auctions and by definition, the Ross group bid the highest amount. The market price may be what the other bidders were willing to pay, but more importantly, the bidder's bid an amount that they think can generate their specific targeted return, based on their cost of equity and debt and the fees that have to pay. The 25% may really refer to the markdown that the seller had to take from what they were carrying the portfolio at, which wasn't based on reality.
The bidders in these auctions are knowledgeable real estate investors who generally have the same targeted returns and costs. Even so, their valuations on specific properties can vary widely -- I've seen one bidder value one property at $50k and another value it at $0, yet their overall bids for the whole portfolio were closely in line.
The other important point is that these auctions are occurring all of the time which puts downward pressure on asset values.