ASAP: Asset Sale Action Program

A Proprietary Program to Accelerate the Sale of OREO Assets Which Are Currently Held Within the Shared Loss Agreement.

Having a Strategic Plan Will Maximize Recovery

Asset Sale Action Plan is designed to provide Assuming Institutions (AIs) a systematic approach to strategically sell their OREO properties that are part of a Shared-Loss Agreement (SLA) for which the FDIC, as receiver and the AI share risk (although the program works for all OREO assets).

Concept:

Properties will enter a structured sales program that results in the sale of assets over an accelerated time frame. The asset sale process, conducted by Hilco’s “best in class” professionals, is a tool to ensure AIs minimize losses and maximize collections. The Hilco ASAP process can efficiently and persuasively demonstrate such compliance in future loss-share audits.

Why We Are Different:

Banks can benefit from a collaborative partner who has the expertise in monetizing hard to sell assets. Our team of real estate professionals each add value to our process in a way that a conventional or local broker cannot. We do not pursue the easy work and disregard the balance. We incorporate a combination of deep due diligence, longstanding strategic relationships with brokers and extremely proactive marketing to maximize value/minimize liability across a given portfolio, regardless of its size or complexity.

Result:

Assets are sold in a structured timeframe while documenting and maintaining the integrity of the sale process to meet the FDIC Guidelines.

A proprietary 3-stage structured sales process to minimize losses and maximize collections.

The Hilco ASAP process will efficiently demonstrate and document compliance in future loss-share audits.

ASAP Stages

STAGE ONE – Asset Analysis & Innovative Strategy (15-30 Days):

Assets are evaluated and placed into three different categories based on how long they have been OREO, amount of interest they have gotten, cost to carry, location, asset type and other characteristics. An asset report is generated (including a BPO) and based on this information we recommend a marketing and sales strategy for the different categories.

Category 1 Assets:
Desirable assets that could benefit from some more time on the market and some additional more aggressive marketing.

Category 2 Assets:
Assets that have received interest but for some reason have not been sold.

Category 3 Assets:
Least desirable assets, assets that have been OREO for a long time and have garnished little attention from the market.

STAGE TWO – Initiate Sales & Marketing Strategies (60-90 Days):

After the properties are evaluated and categorized, the sales and marketing strategies are initiated.

Category 1 Sales Strategy:
Re-List or work with the current broker to enhance marketing, evaluate proper list price, and aggressively market the asset for a sale in 90-days.

Category 2 Sales Strategy :
“Call For Offers” program to add urgency to the sale process. Assets are put into an enhanced marketing program with a deadline to submit offers.

Category 3 Sales Strategy:
Marketed through a Structured Auction, as allowed by FDIC guidlines– category 3 assets need an aggressive sales and marketing approach to get the market to react.

STAGE THREE: Close, Report and Re-Evaluate (Re-appraise if Necessary) (30-45 Days):

After Stage Two a large percentage of properties will be under contract and proceeding to closing. The properties that are not are re-evaluated, and moved into a different more aggressive category. Some assets may require a new appraisal to justify the banks position with the asset.

Closings:
Closings typically happen within 30-45 days after a contract is signed.

Reports:
Marketing & Status reports, detailing and justifying all factors that influence the sale and asset value are created to support each decision for the benefit of the lender and regulator.

Re-Evaluate:
Properties that are not sold will be re-evaluated based on interest and feedback from potential buyers and an updated strategy will be recommended.

Re-Appraise:
Some properties may need to be re-appraised for the bank. We will provide the appraiser our marketing & status reports to help justify a new value.