Jim88 Wrote:
Oct 22, 2012 9:08 AM
Each delinquent loan on the banks books becomes a Scheduled Item on their books, as well as any REOs they have on their books, so by holding off on foreclosure keeps the REOs off their books, and the bank examiners see only one red flag for the bank, in delinquent debts trying to be worked out right off the bat, since the first thing they look at is the list of Scheduled Items, before they start their audit. If you foreclose, as a bank, you better have a buyer(s) standing in the wings to take that foreclosure off your hands by the time the hammer falls at the sale.