Do you know how absurd it sounds that the Bank is insisting the price of a repossessed prop is R3.5m (initial incorrect value R4.5m, then R4m), valued currently at R2.5m market value, R2m forced sale value, in terms of their own assessors (revaluation requested by me on Friday).
Do you know how absurd it is refusing highest offer of R2.1m (R100k more than forced sale value and R 500k more than sheriff auction sale) after testing the market 4 times? (2 auctions and chance for pre and post auction offers.)
The right business decision would be to let it go and take the impairment. From now onwards interest rates might increase again if inflation keeps rising and they are holding out for R3.5m?
I beg to differ, Standard Bank is only acting out of own interest, prejudicing the client and me due to their initial incorrect valuation, against which R4.2m equity was released. Client is now bankrupt and they hence cannot recover their bonds.
They are trying to fix, a mispriced asset, their mistake, with another mistake, not realising same asset at best possible price and pass the cost of that to me!!!
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