Auction Process Maximizes Recovery for Bank
Our bank client needed a nonjudicial foreclosure of real property collateral that consisted of approximately 200 acres of recreation or timber investment property located in a rural area.
The bank wanted a third party to purchase the property for a cash recovery for the bank, and traditional nonjudicial foreclosure sales do not attract bidders outside of the county where the property is located. Often bidders are only interested in bidding low compared to market value.
We coordinated the sale with the use of a national auction company. The auction company’s marketing process captured a much wider net for potential buyers than is achieved by just running an ad in a local newspaper. Bidders have the option to bid at the courthouse steps or online.
Online bidding was available in advance of the foreclosure sale date. Bids received in advance of the sale exceeded expectations. The property was sold to a party who participated online on the day of the sale. Competitive bidding drove the sale price up, so the bank was very pleased with the result and recovery.