Mix-up has condos up to auction block early

BRADENTON — More than 50 local condominium units were put up for sale during a recent online foreclosure auction when they shouldn’t have been, officials said.

Court officials rescinded the sale after discovering the error, which was caused by a failure to notify the auction company that the sale had been canceled and rescheduled.

It was the first such mix-up in the 18 months the county has held foreclosure auctions on the Internet, said Lori Tolksdorf, courts director for the Manatee County clerk of court and comptroller.

“It’s something we’ve never encountered before,” she said. “It’s unusual.”

Sale had been delayed

The July 6 sale involved 51 units in River Dance, 808 Third Ave. W., owned by The Promenade at Riverwalk LLC. A Manatee County circuit judge has ordered their sale to satisfy a nearly $9.6 million foreclosure judgment against the developer and in favor of Wells Fargo Bank.

The auction initially was scheduled for Jan. 29, then pushed back to July 6. In June, a judge canceled the July sale and re-set it for Sept. 21 after the bank and developer said they needed more time for settlement talks, court records show.

Auctioneer didn’t know

But that information didn’t get to RealAuction.com, the Fort Lauderdale company that conducts the county’s foreclosure auctions and tax deed sales online. So the units were included in the July 6 auction.

After no one bid on the condos, RealAuction sent an automated e-mail to Well Fargo’s attorney telling her that the bank had won them by default. That perplexed the attorney, Kelly Robinson, who had not made any bids on the bank’s behalf.

“The fact that had happened was strange,” she said. “I didn’t think it was typical.”

Sale canceled

Robinson then contacted RealAuction and court officials, who quickly canceled the sale. The bank never took title or possession of the condos.

Court officials blamed a 60-day time limit for the premature sale.

The clerk’s office sends RealAuction, on a daily basis, information about foreclosure auctions that are scheduled to be held within the next 60 days. The Sept. 21 River Dance auction date wasn’t sent to the company because the 60-day window had not yet opened.

Fixing the problem

Tolksdorf said the problem will be fixed when the clerk’s office implements a new case-management system later this year. In the meantime, the 60-day limit will remain and court officials will issue a certificate of no sale if any other properties are put up for sale prematurely because of it, she said.

First-time mix-up

A RealAuction official said it was the first such mix-up the company has encountered in the more than 110,000 foreclosure auctions it has conducted for 13 Florida counties.

“It’s a system that’s been proven reliable,” said Lloyd McClendon, the company’s chief executive.

Duane Marsteller, transportation/growth and development reporter, can be reached at 745-7080, ext. 2630.