Question-and-Answer Session
Operator
(Operator instructions). We'll go first this afternoon to John Arfstrom with RBC Capital Markets.
John Arfstrom - RBC Capital Markets
Thanks. Good afternoon, guys.
Dave Stoehr
Hello, John.
John Arfstrom - RBC Capital Markets
Dave, may be a question for you on the process of clearing escrow on remaining bargain purchase gain. What is the maximum timing in terms of how long you think this could take? I know you maybe intimated that a lot of this could come in the fourth quarter, but is this something that maybe last through the first quarter at the longest and I guess the question is how much would be Q4 versus Q1 or Q2 of next year?
Dave Stoehr
Contractually, the time can run until October of next year. We don't think that, that many will go that long. From July 28th, when we close through the end of September, we had about 22% of the items cleared and it took some time to get the communication out and to get established and documentation. So, we're seeing some good progress here in the third quarter of getting things teed up to move out. I think we'll clearly have more than half of it done by the fourth quarter if trends and backlogs turn out to be accurate.
We really still have two more months left this quarter. And the issue is generally, it was collateral. The loans were generally placed into escrow because certain collateral documents didn't have assignment language in them. So, we had letters of credit as our collaterals or letters of credit may not have had assignment language. If we had marketable securities account with a brokerage company where the prior owner had an assignment, some of those contracts that they had for having it as collateral didn't have assignability language in it. So what we're really trying to do is work with the third parties that hold that collateral and just get the documents changed. So now the collateral is assignable to us versus the prior owners.
So that process isn't that owners is just getting the third parties to pay attention to it and work it through. We're hopeful that we'll have a substantial majority of it done in the third quarter. My guess is that some of them will flip over into 2010. So we're hopeful that it's not a lot. The sellers and us would prefer to be done with it and accelerate it. So, we're both working expeditiously to get it done.
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