Banks (almost?) never want to repo and own a property. In most situations the bank 1. spends a bunch of opex to work out / sell off the property, and 2. has to

Banks (almost?) never want to repo and own a property. In most situations the bank 1. spends a bunch of opex to work out / sell off the property, and 2. has to remit any excess to the borrower. There are predatory operators known colloquially as “loan to own” guys, but they are usually unregulated and operating in the business world where the collateral value is less observable. For a bank, I believe Other Real Estate Owned (OREO, the balance sheet category where foreclosure properties are carried) is always considered a black mark and a burden, dragging down ROA/ROE.