Ownit Mortgage bid procedures approved for $3.04 million loan sale

By Caroline Salls

Pittsburgh, May 15 - Ownit Mortgage Solutions, Inc. obtained court approval of the bid procedures for the proposed $3.04 million sale of 27 mortgage loans, according to a Tuesday filing with the U.S. Bankruptcy Court for the Central District of California.

The stalking horse bidder is Credit-Based Asset Servicing and Securitization LLC, which previously bought 54 of the company's mortgage loans.

Ownit said the stalking horse bid represents 84% of the unpaid principal balance on the mortgage loans as of April 1.

If C-BASS is not the high bidder or the sale does not close by June 15, Ownit will pay C-BASS a break-up fee of 3% of the purchase price.

All competing bids must be for at least $3.23 million, which includes the amount of the break-up fee.

All bids must include a 10% deposit and assurance that the bidder can pay the full purchase price by June 15.

Bidding will start with the highest overbid and continue in $50,000 increments.

The auction will be held June 11, and the sale hearing is scheduled for June 12.

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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