Bank Ordered Auction of Foreclosed Company’s Assets
Schneider Industries works with banks and lending institutions throughout the country providing appraisal services and assisting lenders with auctions of equipment and real estate.
The Community Bank of Oelwein, members of the ICBA, foreclosed on a property in their hometown of Oelwein, Iowa. The foreclosed company, Oelwein Industries, manufactured heavy duty tool and medical cabinets. Paul Gray, President and CEO of Community Bank of Oelwein who sanctioned the auction, answered some questions regarding the auction process.
Q: Why did you decide to try an auction company?
A:Our bank marketed this business for over two years on our own. We had a lot of interest in the business but no one came to the table and closed. When we contacted Schneider Industries, our first conversation discussed an auction. In a foreclosure situation, auctions can generate interest and create a sense of urgency in a buyer’s mind. Within eight weeks, Schneider Industries sold the entire property within 10% of our original asking price.
Q: Why did you select Schneider Industries?
A: They were able to bring in potential buyers not only from our home state, but many others as well, including Canada and Mexico. As a matter of fact, the winning bidder was from Minnesota, not Iowa. Also, because of Schneider Industry’s experience in offering and selling real estate, they were able to sell a 40,000 Sq. Ft. building on 5+ acres.
Q How did the operations side of the auction work?
A:Schneider Industries managed the entire auction from start to finish. They were able to accomplish the advertising, marketing and operations of the auction for the same budget our local auction firms were quoting. The day that Schneider Industries announced the availability, our phones started ringing.
Q: Would you use Schneider Industries again?
A: I would. They were able to bring in a number of potential bidders we couldn’t find. We had 50 bidders on site and 30 bidders on the internet. They understood the auction business and treated everyone fairly and honestly from the beginning of the project until the completion. I can tell you, they did what they said they would do. “Create a win-win situation for the bank and the buyer.” I would unequivocally say mission accomplished.
Schneider Industries US Headquarters is located in St. Louis, Missouri. Latin American Headquarters is in Torreon, Mexico. Schneider Industries can be contacted at 314-863-7711 or www.schneiderind.com
