The FDIC is a major player in the real estate business these days – and getting bigger all the time.
With every failed bank they take over, the FDIC often finds itself owning foreclosed real estate as well. Developments that are half finished or awash in legal battles fill their expanding portfolio. And the FDIC is having a hard time unloading these properties onto the market.
Developing land is a complicated process – a culmination of decisions and actions that eventually lead to a finished product. Developers, engineers, architects, and builders make countless choices over the life of a project and to try and take over midway through is not easy.
Certainly you would want a considerable discount on price in that situation. And as this WSJ article suggests, that is giving the FDIC fits.