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The house here had some significant foundation problems which was a shock to the finance company that owned it. No mention of the obvious foundation problems had been mentioned in any of the appraisals done previously. The house sat on a terraced lot with a deep ravine to one side. It looked as if the house was slowly sliding down into the ravine. In addition, the slate roof was leaking badly in one of the back rooms. Needless to say, the finance company was a little unhappy with this revelation.

Steve O did a complete and thorough evaluation of the market value "as-is" and "subject to repairs". He made estimates to have the repairs and improvements made. By using this logical and documented system, it was determined that the finance company should sell the property "as-is" instead of attempting to make the costly repairs. A complete report along with a series of photos was submitted and the finance company concurred with the recommendations in the report.

Repairs aside, the house had some unique architectural features and for the most part, had quality construction. It had once sat proudly on top of the terraced hill overlooking Government Road and Fulton. The walk-way leading up the terrace had been hand constructed of James River Stone. The house also had some English Tudor accents, a full front porch, basement, slate roof, and garage. It was not a typical or traditional home, nor was it typical of bank foreclosure properties. Additionally, the house next door had recently been sold and was being worked on. Steve O theorized that there was real value in the house if the foundation and roofing issues could be minimized. What better way to minimize than to reduce the roofing and foundation to a dollar figure?

The property was marketed as a fixer-upper. The foundation and other issues were brought out as a positive feature since, presumably, the buyer could get a better price for handling the work themselves. A good mix of owner occupants and investors were introduced to the house through direct Email, broadcast fax, and traditional marketing. The traffic through the house was actually better than some other homes in the area despite the derelict condition of the property.

Over three months, the bank received three written offers from different buyers. In the end, one of the contracts was accepted. The buyer was comfortable with the house and condition and did so with full knowledge of the amount of work needed.

The finance company did incur a loss but it was less of a loss than it could have been. By smart and resourceful marketing and analysis, the finance company minimized their loss, and moved a very "tough" property.