"The bids that came in on those properties were between 20 and 30 percent on the dollar, which is the reason we declined the offers. They were just way too low," explained Alan Thompson, senior vice president of Centennial Bank.
Thompson says the bank appraised its lots 30 to 90 days before the auction, so the valuation was recent and, they believe, fair.
But EN Auctioneering, the group who put on the auction, says banks are being very cautious and pricing these homes way too high. "There are many issues involved; the bailout could be one," said Ryan Nelson, with EN Auctioneering.
Eric Nelson, founder of Eric Nelson Auctioneering, says buyers' bids totaling about $7.5 million were rejected because of indecision among nervous lenders, the pending bailout and last week's stock market plunge. He said apparently banks don't want 60 cents on the dollar when the government may give them 75 or 80 cents through the bailout.http://www.ksl.com/?nid=148&sid=4522597
Also reported in the Daily Herald and the Salt Lake Tribune.
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