 
|
Spec House Recovery with a Little IngenuityResidential contractor folded offering a deed in lieu on two spec houses, one complete the other 70% complete. Both loans were full advanced with numerous trade payables outstanding. We opted to institute a friendly foreclosure in which the borrower waived its hearing rights. Once possession of the property was obtained, the bank marketed the completed property which was sold for recovery of full balance and fees. As is offers on the incomplete house would have resulted in a $200M loss. We received approval from Bank management to engage a general contractor to complete the other spec house. Terms were a 50/50 split of profits from sale. Ultimately, the Bank realized a $30M profit. In each case study, we were able to assist our client Bank from experiencing significant losses. In each case, the Bank's management would have gone in a different direction had Crossroad Credit and Portfolio Management LLC not been involved. |
 |  |
