Seizing, managing and reselling real property collateral to recover unpaid loan balances is secondary to lenders’ primary line of business. The beneficiary will remove the liens and other debts on the home and try to resell it to the public, either through future auctions, direct marketing through a real estate broker, or by itself. Bank-Owned Property Definition Bank-owned property is a designation given to properties that were not sold during a foreclosure sale and thus are added to that bank’s inventory. These property preservation services include: securing a property changing locks, boarding up , debris removal, property maintenance winterizing, cutting grass, repairing or tarping roof leaks , and rehabilitation. The next step is to try and sell the property at auction.