Negotiating Foreclosed, Forfeited and Excess Assets

The effects of global health crisis and worsening economic conditions have caused a triggering event on the financial wellbeing of government, companies and people; resulting in losses, decreased cashflow and revenue, restrictive spending and failures in mandatory obligations.

The challenging situation with uncertain future of the business environment in which an entity operates is now contributing to the new thinking around revenue generation and business continuity, viz-a-viz leading to the selling (or adopting other revenue generation strategies) of excess and forfeited assets, and liquidating inventories. This has created a room for creative negotiations; allowing buyers to put all negotiating points into a single offer and place it as a take-it-or-leave-it proposition.

Why take-it-or-leave-it proposition?

1. Most economies are yet to get off the health crisis and the recovery path is still uncertain, so the need for government to look for how to generate revenue to finance their activities.

2. Banks can no longer cope with the increasing rate of delinquency and still want to be in the business of leading money, hence the need to offer large discounts to get the real estate deals off their books and reduce risks.

3. Companies need to refinance their debts and or inject new capital into their operations, so the disposal of excess assets is key.

4. With the property market facing an uncertain future, most strategies are thinking on how to navigate the new normal realities and not necessarily make excess profit. 

The decision to buy, lease and or joint venture partnership on the foreclosed, forfeited and or excess assets must be thoroughly assessed considering the following:

a. The global health crisis

b. The disruptions in the real and illiquid assets markets.

c. Risk and Return consideration.

d. Market Outlook - Uncertainty, Volatility & Liquidation.

e. Due Diligence - Valuation, Legal and Facility Condition Index

If you are planning of buying any of the foreclosed, forfeited and or excess assets; be clear-headed, unemotional, go get the value if its matches your criteria and then engage us for further professional ad vice and market insights.

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