Will an auction bring a buyer for Lou's mansion?

Conventional marketing hasn't produced a buyer for Lou Pearlman's Windermere property, so bankruptcy trustee Soneet Kapila and the first mortgage holder, Bank of America, want to try an auction instead. They have asked the judge for permission to hire Fisher Auction Co. as auctioneer. The bankruptcy estate will advance up to $25,000 toward marketing expenses for the auction. If the property sells, those expenses will be the first money reimbursed. In addition, the trustee will get 2 or 3 percent of the purchase price (depending on whether there is a procuring broker involved). A contract to sell the mansion for $7.1-million fell through because the buyer did not obtain financing. The first mortgage on the property is in the neighborhood of $5.3-million. There also is a second mortgage, although it is secured only by vacant land next door to Lou's house.

Kapila said no date has been set for the auction, but it would most likely be in late February.

Comments

Sounds like a blue light special for B of A and Fisher Auction Co.

[Mr. Big Shot]

I bid $500.