Acquired Property Net

9 Months Ended

12 Months Ended

Sep. 30, 2011

Dec. 31, 2011

Notes to Consolidated Financial Statements

Acquired Propery Net

7.  Acquired Property, Net

Acquired property, net consists of heldforsale foreclosed property received in full satisfaction of a loan net of a valuation allowance for declines in the fair value of foreclosed properties after initial acquisition. We classify as held for sale those properties that we intend to sell and are actively marketed for sale. The following table displays the activity in acquired property and the related valuation allowance for the three and ninemonthsended September 30, 2011and 2010.

	For the Three Months Ended							For the Nine Months Ended
	September 30, 2011							September 30, 2011
	Acquired Property		Valuation Allowance(1)		Acquired Property, Net		Acquired Property		Valuation Allowance(1)		Acquired Property, Net
	(Dollars in millions)
Balance as of beginning of period	$	14,915	$	(1,323)	$	13,592	$	18,054	$	(1,881)	$	16,173
Additions		4,066		(144)		3,922		13,953		(422)		13,531
Disposals		(5,606)		601		(5,005)		(18,632)		2,119		(16,513)
Write-downs, net of recoveries		-		(314)		(314)		-		(996)		(996)
Balance as of end of period	$	13,375	$	(1,180)	$	12,195	$	13,375	$	(1,180)	$	12,195
	For the Three Months Ended							For the Nine Months Ended
	September 30, 2010							September 30, 2010
	Acquired Property		Valuation Allowance(1)		Acquired Property, Net		Acquired Property		Valuation Allowance(1)		Acquired Property, Net
	(Dollars in millions)
Balance as of beginning of period	$	15,141	$	(1,120)	$	14,021	$	9,716	$	(574)	$	9,142
Additions		8,586		(339)		8,247		22,176		(629)		21,547
Disposals		(4,618)		390		(4,228)		(12,783)		915		(11,868)
Write-downs, net of recoveries		-		(450)		(450)		-		(1,231)		(1,231)
Balance as of end of period	$	19,109	$	(1,519)	$	17,590	$	19,109	$	(1,519)	$	17,590

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(1)	Reflects activities in the valuation allowance for acquired properties held primarily by our Single-Family segment.