1. Bank forecloses on a property:
A. Bank has some form of a payment collection company (PCC) that handles insurance, taxes, HOA dues, hiring for specific services, etc.;
i. Bank directs PCC to engage a property manager;
a. PCC contracts with property management firm (PMF)
1) PMF contracts with a local realtor to do the monthly property management.
ii. Bank directs the PCC to engage an insurance manager;
a. PCC contracts with an insurance inspection firm (IIF);
1) IIF contracts with a local insurance inspector to complete the work.
iii. Bank directs the PCC to acquire a “Broker Opinion”;
a. PCC contracts with a Real Estate Appraiser firm (REAF);
1) REAF contracts with local real estate agent to complete the “Broker Opinion”.
These are just 3 examples of how Banks uses multiple levels of companies to insulate themselves. In some areas real estate agents are required to disclosure that a listing is owned by a Bank. Be careful to ask questions regarding ownership and disclosures. Foreclosures are a "Buyer Beware" situation.