Business Journal: Bank Cancels Auction Sales
In a West Sacramento housing auction, “sold” doesn’t mean “escrow.” Shana Lynch with the Business Journal explains.
Tuesday, October 16, 2007
Twenty bidders walked away from an auction for Leonard Development’s West Sacramento homes, thinking they had landed steep discounts. But two weeks after the auction, the bank that holds title to the homes canceled the deals. Irwin Union Bank of Columbus, Ind., highlighted the auction’s fine print, saying the bids didn’t meet the minimum prices. The auction, held Sept. 22, attracted almost 200 people. Final bids for homes at River’s Side at Washington Square averaged $88,000 less than the minimum price the bank required. But buyers weren’t told until weeks later their winning bids didn’t win anything. The development, built over the past four years, includes 25 three-story, stand-alone town homes. Only three have sold.