what issues do we have if we wind up selling a large oreo property and providing 100% of the financing to the prospective buyer(not a current customer). If we accept the offer we would be selling the property below appraised value.

anyone dealth with this before?

Talk to your external accountants. It will stay in OREO property until certain conditions are met.

As Randy said, talk to your external accountants. In mosts cases if you finance OREO at 100% you will have to continue to carry the property on your books as OREO (among other things).

I'm not aware of a requirement to carry the property on your books after a sale, however take a look at FAS 66. I believe you need to carry a reserve of sorts on anything above the FAS 66 requirements. Your accountants can provide better direction on FAS 66 i'm sure.

If you don't get the required downpayment it must remain on your books as OREO property and the interest income received must be deferred.