NW Arkansas Real Estate Rebounds, But Benton County OREO Stacks Up

by George Waldon  on Monday, Jun. 24, 2013 12:00 am  

Ron Pender, left, and Barry Cooksey are building houses in the Clower Farms neighborhood in Rogers and on other OREO lots acquired from Benton County lenders. Banks are working to convert into cash property recovered on failed development loans. (Photo by Brooke McNeely Galligan)

For instance, Arvest Bank of Fayetteville controls some OREO property through Southwest Cattlemen’s Corp.

Arvest’s Benton County holdings through SCC include 16 lots and 43 acres in the Angel Falls project in Bentonville, 25 lots and 100 acres in the Summit Meadows project in Pea Ridge and 237 acres along Highway 112 between Rogers and Cave Springs.

Randy Dennis, president of the Little Rock bank consulting firm of DD&F Consulting Group, said the use of another corporate entity is typically done as legal insulation, to create a layer of protection and put some legal distance between a bank and potential liability.

That liability concern could be potential environmental issues or other litigious possibilities.

“If you’re ever in the chain of title with a property like that, it’s not a good thing,” Dennis said.



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