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We understand that banks may not need a deduction in today's market (if your client needs a deduction, great...we have the solution for you). For those banks that need to get rid of properties that are costing them money and need cash, this is a great program. This program even works for those properties that simply need to come down. Here is the basic process:
1. Bank decides to donate and monetize a property (or a group of properties). They sign a non binding LOI with Retake Your City.
2. The bank needs to determine the value of that property (typically through an appraisal). If they don't already have one, they will need to order one.
3. Once the value of the property has been established, the property is submitted to the monetizing group to determine the cash amount the bank will receive. The typical amount is between $0.25 to $0.40 per appraised dollar.
4. If this cash amount is acceptable to the bank, then the bank will sign a Contribution Agreement with Retake Your City and the monetization group facilitates the matching of a buyer of the deduction with the deduction size. This process can take 6-60 days.
5. Once the buyer of the deduction is matched, then the closing takes place. At the time of closing, the cash the bank will receive is placed into escrow. The bank will NOT donate the property until the cash is in the escrow account. The donation and cash payment to the bank will happen at the same closing.
6. Any fees, back taxes and broker commissions will be settled at the closing and dispursed to the proper parties based on the closing statement.
This is a great way for banks to move their growing inventory of foreclosed properties. It is a great way for you, as the broker, to help provide a creative solution to your clients and get paid on those properties that might not sell or that might only sell for $0.10 - $0.15 on the dollar. If you have any questions or have a client that might be interested, please contact us to learn more.
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