Simons Informational Services
Determining the equity in the collateral
is easy. The hardest part is to ascertain if the collateral has sufficient equity in it to post recoveries after determining
what, if any, is the cost of possession, cost of maintaining the property (Property taxes, insurance, utilities, and others),
and all the man hours conducting site visits, talking to brokers, and report writing. However, most importantly, the costs
of funds of holding onto the property.
Simple step on determining your Protective Bid
+Appraised Value
-Cost
of Sale (Between 8% to 12%, depending on the type of property
-Senior Liens
-Delinquent Property Taxes
=Total Equity