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Status:
"Made the Retirement Run in under 12 parsecs!!!"
(set 8 days ago)
Location: Cary, NC
43,087 posts, read 76,661,372 times
Reputation: 45402
It was a fascinating scene.
$32,000,000 auction in the lobby with all sorts of people passing through, and street noise every time the doors opened.
David Pryzwansky did a yeoman job reading, with articulation, the 14 page legal notice.
A few of us loitering to see who might be there.
The feller from SunTrust was Rogers.
I guess when he bid, Hasentree became "Mr. Rogers' Neighborhood?"
How exactly does this play out? Suntrust was trying to recover $39 million borrowed by the developer and then Suntrust was the top bidder for the property? So is Suntrust just paying itself for the property? How does that work? Obviously I have no clue how foreclosure works.
Status:
"Made the Retirement Run in under 12 parsecs!!!"
(set 8 days ago)
Location: Cary, NC
43,087 posts, read 76,661,372 times
Reputation: 45402
Quote:
Originally Posted by North_Raleigh_Guy
How exactly does this play out? Suntrust was trying to recover $39 million borrowed by the developer and then Suntrust was the top bidder for the property? So is Suntrust just paying itself for the property? How does that work? Obviously I have no clue how foreclosure works.
I wonder at this point if SunTrust knows how this will play out.
It appears they waited right up to the 90 day limit from getting the court approval to execute the sale.
I would love to hear from a banker how the money is accounted for, but it would seem that SunTrust would have to move $32,000,000 from one line to another. Nice chunk of liquidity.
banks always win it at auction....maybe they can treat it as an asset instead of a payable
"The lenders are simply trying to defer the losses to a later date, because having to recognize the losses short term might pose severe risks to the banks in question."
The FASB eased the mark to market rules for banks yesterday. The banks potential loss might not look as bad on paper.
Quote:
Originally Posted by jshallen
banks always win it at auction....maybe they can treat it as an asset instead of a payable
"The lenders are simply trying to defer the losses to a later date, because having to recognize the losses short term might pose severe risks to the banks in question."
How exactly does this play out? Suntrust was trying to recover $39 million borrowed by the developer and then Suntrust was the top bidder for the property? So is Suntrust just paying itself for the property? How does that work? Obviously I have no clue how foreclosure works.
The bank calculates their foreclosure bid based on several factors. Typically you find that no one is willing to bid more than the bank. When there are inventory homes in various stages of construction, the bank will often contract the original builder to finish out the product (which is the least expensive route.) The property sales are generally handled by a special department that will use several different avenues to sell the property.
The bank calculates their foreclosure bid based on several factors. Typically you find that no one is willing to bid more than the bank. When there are inventory homes in various stages of construction, the bank will often contract the original builder to finish out the product (which is the least expensive route.) The property sales are generally handled by a special department that will use several different avenues to sell the property.
you would think the bank would just unload the homes as is and let the buyer finish the house
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