ADVISORY/CONSULTING/OUTSOURCING FINANCIAL CONSULTING SERVICES
Real Estate Services - Management and Sale of OREO
As lenders, you follow your local real estate markets closely. Certainly close enough to manage the relatively small amount of real estate loan workouts and OREO that you have had to deal with over the past 15 years.
But, as you know, the world has changed rather dramatically during the past year or so. Markets are no longer functioning normally. 1-4 family defaults continue to increase as unemployment rises and the economy remains in recession. Commercial real estate defaults are projected to reach $100 to $200 Billion. Government regulations related to loan modifications and foreclosures are changing almost daily. In today's environment, it takes an experienced real estate professional to effectively manage, market and sell your real estate assets.
We know that as managers you are under tremendous pressure from both regulators and the bank's board to unload your OREO quickly. We know that there are insurance risks and other liabilities for your bank in holding OREO too long. We also know that in most cases real estate assets are being sold by banks at large discounts from even the current depressed market prices, which of course just further reduces pricing on future real estate sales. In many markets, foreclosure sales of houses and condos are actually making the market, rather than following it. We also know that commercial real estate will be even harder to unload than the bank's portfolio of 1-4 family houses and condos.
At The Wheatfield Group, we believe we can help you by:
- Reducing the bank's staffing and carrying costs related to OREO;
- Improving the net proceeds (returns) from OREO;
- Keeping the bank's management team focused on core businesses, not OREO;
- Providing accounting support for FAS 114 impairment adjustments; and
- Providing a detailed, well documented plan for the disposition of the bank's OREO that can be used to gain the confidence of the bank's regulators and board.
Our OREO management program is unique in the industry.
We will manage the banks OREO, including overseeing the marketing and sale of the OREO. We will provide you with detailed monthly reports and will obtain the bank's approval related to all selling prices and any payments of operating/ownership costs. Effectively, we will function as your "Workout Group".
Now for the unique part, we won't charge any fees for doing this work until the job is complete - meaning until each property is sold. In conjunction with each property sale, we will take a percentage of the net proceeds, ranging from 4% to 8% depending upon the amount of the bank's OREO that we are managing.
Based upon what we have seen, we truly believe that we will net the bank an amount that will more than cover our fee.
We can implement our program with any portion or all of your bank's OREO.
EMAIL US TO DISCUSS
OUR REAL ESTATE OR FINANCIAL CONSULTING SERVICES.
We are here to help and look forward to talking to you soon.
Chicago, Illinois 
Las Vegas, Nevada 
Richmond, Virginia 
Hartford, Connecticut
