Client: Managing Director of Special Assets Group

Role: Bank Executive

Business Description: SFR Construction (Southeastern, Michigan)

  • Dozens of uncompleted residential homes

Critical Issues:

  • During 2008 recession many home builders ran out of money and were unable to complete or hold their houses until they could sell them
  • Almost all homes had to be sold for amounts far less than their cost
  • Most of these construction loans were defaulted by the builder/borrowers
  • Complete all homes with nice finishes

Resolution:

  • Install attractive landscape to create curb-appeal
  • Advertised and marketed homes with select strategic Realtors
  • Priced homes at then current sale prices of sold homes
  • The homes sold fast and in some cases with multiple bidders.  Short holding periods were critical to the Bank.
  • Most of the Bank’s investment was recovered.

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