Property repossessed by a financial institution after foreclosure may stay vacant or unfinished for months or years, making it susceptible to various types of damage. According to RealtyTrac, the leading online marketplace of foreclosure properties, more than 932,000 properties received a foreclosure filing in the first quarter, a 16 percent increase from the same time last year.
Aon Risk Services, the risk management and insurance brokerage business of Aon Corporation, now assists financial institutions to maximize the value of their real estate-owned assets through Aon’s Comprehensive Asset Maximization program.
This approach allows lenders the ability to procure insurance for each stage of the asset maximization process – before foreclosure, during the holding period following foreclosure and at the completion of construction. In addition, this course of action offers completed operations protection for all parties.
“Financial institutions of any size seeking to maximize the value of their REO (real estate-owned) assets face a myriad of insurance and risk management challenges not typically covered by traditional insurance programs,” said Michael O’Connell, managing director of Aon’s financial institutions practice. “This new program allows banks to deliver the best results to investors while allowing them to manage and control the REO maximization process.”