No Thanks, We're Waiting on Our Bailout

Via a reader:

An auction that netted $7.5 million in bids on 56 distressed Utah properties fell through last week after the owners -- three banks and two private lenders -- decided they may get a better deal by holding out for the government's bailout plan.

"There were buyers, but we couldn't sell the homes because free enterprise has gone out of the market," said Eric Nelson, founder of Las Vegas-based Eric Nelson Auctioneering.

His company on Sept. 30 put up for sale 56 foreclosed properties and lots, most of which are in Utah County.

The auction, held in Salt Lake City, attracted thousands, including 200 bidders who bid between $275,000 and $615,000 for 10 luxury homes in Midway and Murray that were appraised at between $525,000 and $652,000. They bid between $26,000 and $100,000 for 44 custom lots in Mapleton, Elk Ridge, Lehi, Alpine, Ogden, West Haven and Willard that were valued between $112,000 and $290,000 a piece.

The most-expensive properties on the auction block included a $1.2 million unfinished home in Draper, which attracted the highest bid at $615,000, while a 62-acre parcel in Park City that's valued at $3.5 million, snagged the highest bid at $1.125 million, said Eric Taylor Nelson, the company founder's nephew.

But all those bids were rejected late last week...

"This has never happened before. In the 25 years we've conducted lender-owned auctions, we've consistently closed over 95 percent of all high bids," Nelson said.

"The stock market's historic drop last week and the bailout plan are some of the main reasons why the lenders rejected the bids," he said. "They're thinking, 'Why sell the properties for 50 cents on the dollar when they may get 75 cents or 80 cents through the bailout?' "

  • tmitsss

    Out Rage Us

  • http://loosekannon.com/?p=502 David

    I truly believe that the way to get us out of this deficit is to pour money into things like highways and whatnot. Perhaps even these new fangled contraptions called zeppelins. Check out this site and their revolutionary ideas http://www.petergreenberg.com/2008/10/27/tired-of-airplanes-how-about-a-zeppelin/
    This idea is not new, its a great idea but not a new one. The answers are not these huge revolutionary things but things that already exist but need tweaking.

    Another thing that would help our economy is to increase exports. Its simple math more money coming in is good. Why pay farmers not to farm? Thats a socialist idea not a capitalist idea. We are not capitalist nor do we truly believe in free trade. This means we have a mixed economy and that essentially means we are socialist...that however is an entire other can of worms.

  • http://www.thogek.com/ Thogek

    "An auction that netted $7.5 million in bids on 56 distressed Utah properties fell through last week after the owners...decided they may get a better deal by holding out for the government's bailout plan."

    This has to be one of the saddest statements of our current economic state that I've heard so far. It's bad enough that we've ruined so many formerly-wild animals' ability to feed and take care of themselves (converting them into semi-domesticated scavengers of human cast-offs), but now we're doing the same to our own business enterprises?

    Sigh.