Thread Options Tools
#2100125 - 09/23/16 04:01 PM Sale of OREO
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
I guess things have been rather simple in our OREO world. We sell the property and record the Gain/Loss on sale. But, now we have sold and financed an OREO. We sold the property for an amount less than carrying.

But, now we have a construction loan on the property to a new borrower where we advanced the full purchase price at the time of closing and the borrower has a line for renovations.

I'm looking at ASC 360-20 for whether or not we have a true sale and how to record. (It was a loss from carrying value, so ....loss.) Correct place? Anything else I haven't thought of?

Return to Top
General Discussion
#2100214 - 09/23/16 08:22 PM Re: Sale of OREO Cornfed Turtle
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,368
Galveston, TX
You really need to sit down with your external accountants.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2100289 - 09/26/16 01:44 PM Re: Sale of OREO rlcarey
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
I read through 360-20 this weekend and came to the conclusion that Management needs to get an opinion on this one...and then never do it again. But thanks for validating my confusion from Friday.

Return to Top