- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Can banks lease REOs?
Posted on 12/20/11 at 10:37 am
Posted on 12/20/11 at 10:37 am
I know that they are in the business of lending money and don't want to take on this liability. Is this legal? Are there any special rules or regulations that banks must follow?
Posted on 12/20/11 at 10:57 am to geauxtigers12
What do you think banks have in the way of liability exposure for the properties in their REO portfolios? They have to insure themselves against claims for all of the properties, and it isn't cheap. Do you think they want to operate in a manner that increases their exposure? And leasing would increase the exposure due to increased human activities in and around the properties.
Posted on 12/20/11 at 3:28 pm to geauxtigers12
I don't know of any laws preventing them from doing so, but as was previously stated, I doubt many banks would want to take on the additional liability. Since banks don't generally have a property management division, it's unlikely that they would want to bother with day to day responsibilities just to make a little extra cash while the property is sitting there. I'm sure there are some small niche servicers out there that do this but I doubt there are many.
Posted on 12/22/11 at 1:36 pm to 12more
12more is correct - no lender will lease a REO. They want to sell it and get it off of their books. It affects how much they are able to lend to others. Also, as previously stated, the liability is way to high.
Popular
Back to top
Follow TigerDroppings for LSU Football News