Foreclosures and REO Sample Clauses

Foreclosures and REO. If an independent appraisal exists at the time a property enters either of these categories and that appraisal is no more than six months old, the appraisal may be used to determine the fair value. If the appraisal is more than six months old or there is no independent appraisal on the property, then an independent appraisal will be required to be completed within six months of the date the loan enters either category. The fair value will be adjusted for additional expenses, such as insurance, taxes and legal fees that have been imposed to protect the investment or to obtain clear title to the property to the extent these amounts are expected to be recoverable from the disposition of the property. A write-down of the asset will be taken based upon the resultant value.