Define 'discounted paper'

[yinkaafrica]

American General is asking if my business has 'discounted paper.'
I assume that means 'have my customers bought from
me where their contract was sold to a finance company.'
Is this correct?

[Worst Username Ever]

1. Discounted paper is generally loans in default

that are sold at a discount so someone doesn't have to deal with the forclosure proceedings.

On edit: Sometimes a private investor will buy it, KNOWING it is going into forclosure. The forclosed property is the seized (as it would be anyway) and the private investor sells it off at a profit.