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Resolution Trust Corporation: Recoveries on Asset Sales Through September 1992

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Report Type Reports and Testimonies
Report Date Jan. 8, 1993
Report No. GGD-93-51FS
Subject
Summary:

GAO, in a report issued a year ago (GAO/GGD-92-36FS), examined the cost of resolving failed thrifts. That report contained information on the Resolution Trust Corporation's (RTC) recovery rates and an analysis of the data from RTC's Real Estate Owned Management System. This report updates that information. Although cumulative sales of real estate more than doubled from October 1991 to September 1992, RTC's sales recoveries--measured as a percentage of net proceeds to book value--have dropped steadily. The recovery data on a cumulative basis also show a decline. Overall, the gap between the sales price for real estate and appraised value continued to widen; data from September 1992 show that the average sales price was about 17 percent less than the appraised value.

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