HARTFORD, Conn. -- Northeast Federal Corp. said it has agreed to sell $30.5 million of foreclosed real estate to an investment banking firm.
The parent of Northeast Savings did not identifier the buyer but did say the sale would result in a pre-tax loss of about $750,000 in the third quarter. Northeast had previously set aside a $6 million provision for losses on the sale, which involves residential properties, most of them in California.
The transaction is expected to close by the end of the month. It will reduce the company's nonperforming assets to 3.84% percent of total assets, down from 4.45% at June 30, the company estimated.