Ownit Mortgage loan sale bid procedures approved

By Caroline Salls

Pittsburgh, Feb. 12 - Ownit Mortgage Solutions, Inc. obtained court approval of the bid procedures for the proposed sale of 54 mortgage loans, according to a Monday filing with the U.S. Bankruptcy Court for the Central District of California.

As previously reported, the company will select a stalking horse bidder by Feb. 19.

The auction and sale hearing are scheduled for Feb. 22, and closing must occur no later than Feb. 26.

All bidders must include a 10% deposit with their bid.

If the selected stalking horse bidder is not the high bidder for the loans, Ownit will pay it a 3% break-up fee.

Qualifying overbids must be for at least 5% more than the selected stalking horse bid.

Bidding at auction will proceed in increments of at least 5% more than the previous bid.

Ownit, an Agoura Hills, Calif., mortgage lender filed for bankruptcy on Dec. 28. Its Chapter 11 case number is 06-12579.

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