3 ms·
The thing is - I'm not sure the bank wants to own any of those buildings, even profitable ones. It's a bank, not a real estate investment fund. The amount of m
by NickC25 3y ago
The thing is - I'm not sure the bank wants to own any of those buildings, even profitable ones. It's a bank, not a real estate investment fund. The amount of money spent on upkeep, taxes, land, finding a buyer, etc... can be and often is quite significant and for a bank, that's capital that could be better deployed elsewhere (which also more often than not aligns better with the core functionalities of the bank).
- nradov 3y agoObviously bank managers and loan officers prefer that borrowers pay as agreed. But lenders know that they will have to repossess a certain percentage of properties, and they have employees or contractors available to manage those until a sale. It's all expected and built in to the commercial lending business model.