Real-Estate Owned

Property owned by a lender, typically a bank, after an ineffective sale at a foreclosure sale. This is common because most of the properties up for sale at these auctions are valued less than the total sum owed to the bank. The minimum offer in most foreclosure auctions equal the owing loan amount, the accumulated interest and any fees related with the foreclosure sale.

If a property is real-estate held, the bank will then go through the procedure of trying to sell the property on its own. It will try to eliminate some of the liens and other expenditures on the hotel, and then try to sell it on the market. Real-estate stockholders will often go after these properties as banks aren’t in the trade of owning hotels and, in some cases, the hotels can be bought at a concession to its market value.