Denver : US taxpayers own dozens of properties because of federal takeovers of failed banks — from nearly worthless vacant lots to golf courses and the most expensive government-repossessed houses in the nation. When the Federal Deposit Insurance Corp (FDIC) took over New Frontier and other wayward Colorado banks, the feds and taxpayers inherited land and property ranging from cows to cars to condos.

Bargains abound, but so do the woeful tales of how luxuries ended up on sale.

That cushy condo duplex in Steamboat Springs has seen its price cut from $3.4 million (Dh12.48 million) for the biggest unit to $1.3 million. The price plummet makes the $30,000 in remaining finishing costs look relatively cheap.

"They were three or four weeks out from finishing both units," when New Frontier in Greeley had to foreclose on the developer, said Prudential real-estate agent Jim Walters, who is marketing the properties for the FDIC's property manager. The FDIC then took over New Frontier — and all its foreclosed holdings — in April in a high-profile failure of the bank's dubious real-estate and agriculture loans.

The condo, on Alpenglow Way, has 5,400 square feet, a four-car garage, a heated driveway and a closet that can be converted into an elevator. The buyer will need to set a sink, grout the tile and wire a few lights.

"New Frontier was saying at one point, ‘If we could just sell this golf course, we could finish up Alpenglow,'" Walters said.

The golf course in question is Bridges Golf & Country Club in Montrose in southwestern Colorado, a burden New Frontier couldn't unload at $7 million.

The taxpayer-owned Bridges is a Jack Nicklaus-designed course with stunning views and ample executive-home sites. Problem is, says real-estate broker James Frazee, "Montrose is not on fire over there."

The 317 acres include 205 building sites, "and that's a lot of lots," said Frazee, who has clients interested in buying the golf club. "I can almost guarantee you whoever buys it will shut down the golf course and sell it for lots."

Current managers at Bridges and FDIC supervisors declined to comment specifically on the property.

The FDIC insures bank deposits and seizes and sells failing banks — 124 across the nation so far this year, up sharply from previous years as more risky loans go unpaid. The federal agency tries to sell branches, deposits, loans and other assets of the failed banks to stronger banks but ends up with lots of real estate on its books that healthier institutions don't want to touch.

"The aim is to liquidate and get the best deals, and put it back into reserves," said FDIC spokesman Greg Hernandez. Anything the government makes back on real-estate sales goes to repay the deposit-insurance fund.

Accusations

From wedding rings to livestock, anything that might have a loan attached is likely to be found in the FDIC's property lists. The FDIC wants to unload properties but also risks accusations of fire-sale prices that cost the government a potential payback.

That can make for a slow day in local real-estate offices. Brokers showing premium properties such as the Steamboat condos want freedom to lower prices in a down market, but such pricing suggestions can take months to get through channels.

Real-estate bargain hunters can find gems in foreclosures and government property if they have the right attitude accompanying their chequebook, Walters said. "There's opportunity there, if they have patience," he said.

— New York TimesNews Service