Method of Doing Business for Auctioning a Defaulted Loan

• US 20140337201A1
• Filed: 07/24/2014
• Published: 11/13/2014
• Est. Priority Date: 07/10/2007
• Status: Abandoned Application

• Current Assignee: Property Liquidators LLC
• Original Assignee: Property Liquidators LLC
• Inventors: Collett, Wayne Curtis, Zahler, Norman Alan
• Application Number:
  US14/340,421
• Publication Number:
  US 20140337201A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

A method of doing business includes identifying an owner of property willing to sell his property by an online auction, entering into a contract with the owner obligating him to complete the sales of his property conducted pursuant to terms of the contract; pre-arranging a minimum auction price for his property that accounts for the owner'"'"'s interest, plus costs and fees, conducting the on-line auction with a plurality of bidders for his property whereby at the on-line auction'"'"'s conclusion there is a winning bidder and ensuring the transfer of the winning bidder'"'"'s funds to the escrow holder.

Claims

1. -4. (canceled)

5. A method doing business comprising the steps of:

a. identifying owners of secured promissory notes willing to sell their secured promissory notes by an online auction;

b. entering said owners into a contract, the terms of which obligates them to complete the Sales of their respective secured promissory notes;

c. pre-arranging a minimum auction price for the secured promissory note that accounts for the secured promissory note owner'"'"'s interest and contracted costs and fees;

d. placing on the auction portal relevant information about the secured promissory note and related documents;

e. limiting bidding to bidders who have proven sufficient resources to complete the transaction;

f. conducting an auction for the secured promissory note whereby at the auction'"'"'s conclusion there is a winning bidder;

g. arranging for the delivery of the original secured promissory note, its security instrument (trust deed or mortgage), the documentation supporting the value of security of the secured promissory note (appraisal), and evidence of ownership (title insurance) to a licensed escrow holder, who at the conclusion of said auction, will deliver evidence of ownership of the original secured promissory note and related documents to the winning bidder and the appropriate proceeds to said note owner; and

h. ensuring the transfer of the winning bidder'"'"'s purchase funds to the escrow holder.

6. A method of doing business comprising the steps of:

a. identifying a plurality of owners of a plurality of properties, each of which being willing to sell at least one of their respective properties via online auction;

b. entering into contracts with the plurality of owners obligating them to complete the sales of their respective property'"'"'s conducted pursuant to the contracts'"'"' terms;

c. pre-arranging a minimum auction price for their respective properties that accounts for interest of the respective owner'"'"'s, transaction costs and fees;

d. conducting a plurality of on-line auctions for a plurality of properties with a plurality of bidders for the owners'"'"' properties.

7. A method of doing business according to claim 6 wherein said property is a secured promissory note and wherein said method includes the step of arranging for the delivery of evidence of ownership of each secured promissory note to the respective winning bidder.

8. A method of doing business according to claim 6 wherein method also includes the step of placing on the auction portal relevant information about the secured promissory note and related documents.

9. A method of doing business according to claim 6 wherein method further includes the step of limiting bidding to bidders who have proven resources to complete the transaction.

10. A method of doing business according to claim 6 wherein method includes the step of holding and completing the auction for a defaulted secured promissory note immediately preceding the foreclosure, trustee, marshal, judicial or any other court ordered sale of the note'"'"'s underlying security.