Selling Strategically


Banks have various options for selling foreclosed real estate, but they often turn to outside real-estate brokers to ease the burden of the overworked credit-management department.


“The credit management people can come in every day to over 100 phone calls, and they just can’t handle that type of chronic workload. There are just a ton of people that are looking to buy the bank-owned properties”


Patricia Dennis, Zions Bancorp


A financial institution that wants to unload its real estate exposure quickly can auction a book of business at a steep loss. Many banks will work with borrowers to get the best return on a short sale, an option that offers the added benefit of selling the property before it becomes a target for theft and vandalism. Outside brokers have a broader market for high-value commercial properties, than the bank, and they also can easily market residential properties. The key is a robust vendor management program, so the bank knows what each vendor has to offer and to ensure that they, too, are monitoring their repair and maintenance contractors.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20