October 15, 2014 -- Sperry Van Ness/Gryphon Parker and auctioneer Richard Kruse completed another Online Only Foreclosure Auction with the sale yesterday of 2358 D Woodbrook Circle South and 1991 Hoadley Drive, both in Columbus, Ohio.
In contrast to the normal Sheriff Sale process conducted in court houses across the state each week, the Woodbrook /Hoadley auction was heavily marketed with print marketing, postcards, email blast, press releases and online promotion including syndication to over 100 other sites plus social media such as Facebook and Twitter.
The properties were sold to different third party buyers multiple bids above the required minimum bid of 2/3 of appraised value. Historically, the common Sheriff Sale process has an estimated 92% failure rate with only 8% of properties offered selling to anyone other than the foreclosing lender.
“We are working to make the “private foreclosure sale” model more mainstream by getting the banks, law firms and judiciary on board,” said Richard Kruse, Managing Director of Sperry Van Ness Gryphon Parker. “Documented successes of auctioneers across the state, coupled with the introduction of Ohio House Bill 586 in July, are changing the way foreclosure auctions are managed in Ohio.”
Under Ohio Revised Code Section 2329.151, the public auction of real property levied upon by execution is to be conducted personally by an officer of the court or by a licensed auctioneer. Ohio Revised Code Section 2335.021 provides that a court may appoint an auctioneer to conduct an auction of real property required in lieu of the county Sheriff.
Ohio House Bill 586 calls for modifications to the current law that would allow creditor's the option to make a simple election to use a Private Selling Officer who could accept written or electronic bids, waive bid deposits for creditors holding liens on the property, postpone a sale at the request of creditor one or more times up to 180 days and conduct the sale at location outside the county.
Sperry Van Ness/Gryphon Parker provides brokerage, management, leasing and auction services throughout the State of Ohio and works with a national buyer and seller base including affluent individuals, corporations and lending institutions. Our internal Special Assets Group, working closely with Parker Kruse Asset Management, advises financial institutions, borrowers and the Courts on troubled asset administration throughout the United States.