Online Only Note Auction
176± Acre Tract Mortgage
2555 N US 29 Highway
Spencer, NC 28144 (Rowan County)
Bidding Opens: Wednesday, August 16 at 1:00 PM ET
Bid Deadline: Wednesday, August 23 at 1:00 PM ET
Sale Manager: Jeb Howell 770-841-9924 or Jeb@AMCbid.com
THIS IS A LOAN AUCTION. We are selling the Promissory Note, mortgage (Deed of Trust), and related loan documents secured by a 176±+/-- acre tract, not the property itself.
ABOUT THE LOAN: On August 31, 2007, a Special Purpose Entity loaned $1,650,000 on an interest-only basis with an 11 month balloon to a Florida based developer who intended to create a world-class auto race course on the property.. In 2008 Borrower defaulted, unable to make the balloon payment at the maturity date. The non-performing loan is now available to purchase at an online-only auction. All pertinent documents are posted on our website.
ABOUT THE PROPERTY SECURING THE MORTGAGE: The property, on both sides of US 29, is bounded on the north and west by the Yadkin River, and by the I-85 right of way on the east, just north of the Spencer city limits. A January 16, 1998 Phase 1 ESA identified environmental concerns on the site arising out the property’s historic use as a textile mill, . A December 2, 2002 Phase 2 Remedial Investigation identified specific environmental concerns. Both reports are available for review at our website.
In 2007, High Rock Properties LLC purchased the site with the intent of developing it as a “world class racetrack”, with condos and other amenities also planned. They leased a portion of the property to a third party who continues to maintain a cellphone tower on the site. After the borrower defaulted, a subordination agreement was put in place such that the lender receives the ongoing lease payments.
The real property was purchased at a tax sale in April of 2010 by a party who has been paying the property taxes through 2016; 2017 taxes of $24,875.86 are due on January 5, 2018. It is Rowan County tax parcel 048 006.
Terms: Bank Proof of Funds Required to Bid, Twenty (20%) percent cash down on sale day as a non-refundable down payment deposit binder to be held in escrow by Auction Management Corporation, balance of purchase price in fifteen (15) days, payable in cash.
The bid deadline for the asset is Wednesday, August 23, 2017 at 1:00 PM ET. Any bids placed within 5 minutes of the deadline will extend the deadline for 5 minutes. The bidding continues until 5 minutes pass with no additional bidding. Auctioneer is not responsible for bidding errors caused by internet outages, bid platform failures, or power failures.
Auction Management Corporation
NCAL# 7403
AUCTION REGISTRATION: In order to register for the auction, you must confirm that you have done your own due diligence prior to registration. You must provide proof of funds from your bank showing sufficient funds to cover the required 20% earnest money down payment in order to obtain a bid number. This may be accomplished by faxing the proof of funds to 770-980-9383 or emailing to info@amcbid.com in advance of the auction. Proof of funds consists of a copy, fax, or scanned pdf of a current bank statement in bidder’s name showing sufficient funds for down payment deposit. If you are unable to provide these in advance, please contact the auctioneer for instructions.
AUCTION INFORMATION & OFFICES: All available material and updates are posted to www.AMCbid.com. Due diligence materials, Auction Note Sale Agreement, Broker Registration forms, and other information may be obtained by calling 770-980-9565, or by visiting our website.
BROKER PARTICIPATION INVITED: Unless noted otherwise in property listing or herein, a broker commission of two (2%) of the Winning Bid will be paid to the NC licensed broker whose prospect purchases and closes on the Note purchase. To qualify for a commission, the Broker must register by mail, email, fax or hand delivery using the Broker Registration/ Opening Bid form posted to the website for the property listing prior to bidder registration. The registration form must be signed by the prospect and the Broker, and must be received at an office of Auction Management Corporation no later than 5:00 PM two (2) days prior to each bid deadline via fax or mail. In no case will a broker registration be accepted after a bidder has registered. Commissions to be paid only upon closing. A Broker cannot act as a principal and a broker on the same transaction.
CONDUCT OF THE AUCTION: Register to bid at our website at www.AMCbid.com . Online bidding will begin one week prior to the auction. The auction ends when the highest bid is recognized by the auctioneer. Bid increments and bidding methodology are subject to change at the sole discretion of auctioneer.
TERMS OF SALE: Winning bidder will pay a down payment deposit of twenty (20%) of the Purchase Price. Upon conclusion of the bidding, Buyer will sign an Agreement for the Purchase and Sale of Promissory Note and Deed of Trust (“Auction Note Sale Agreement”), and must submit required deposit in the form of a wire transfer to seller-designated escrow agent. The down payment deposit is non-refundable.
Settlement must occur no later than 4:00 PM EDT, Thursday, September 22, 2017, unless extended in writing by mutual consent of the parties. Buyer not closing within the contractual time period to close may forfeit his/her deposit. Buyer shall execute the Auction Note Sale Agreement for the asset immediately after being declared the successful bidder by Auctioneer. A form of the Auction Note Sale Agreement is available at our website prior to the auction. The Auction Note Sale Agreement which Buyer must sign at the auction contains an acknowledgment that Buyer has performed independent due diligence prior to the auction, is relying solely on his/her due diligence efforts, and is purchasing the asset “As Is” with all faults and without reliance on any warranty of any kind whatsoever. Furthermore, the Auction Note Sale Agreement requires that one or more of the principals of Buyer is a sophisticated investor with the requisite knowledge and experience to evaluate the merits and risk of a purchase of the Loan Documents, and Buyer’s decision to purchase the Loan Documents is based upon its own independent evaluation of information deemed relevant to Buyer and Buyer’s independent evaluation of the such documents, and related information which Buyer acknowledges and agrees were made available to it and which it was given the opportunity to inspect to its complete satisfaction.THE AUCTION NOTE SALE AGREEMENT is NON-NEGOTIABLE AND NO CHANGES WILL BE MADE TO THE AUCTION NOTE SALE AGREEMENT OR ANY EXHIBITS ATTACHED THERETO, AND BUYER WILL BE OBLIGATED TO EXECUTE AND DELIVER THE AUCTION NOTE SALE AGREEMENT ON AUCTION DAY. Provided, however, Seller reserves the right to modify or amend the Auction Note Sale Agreement, to complete blank sections, to attach appropriate exhibits, and to comply with state and local laws as may be enacted or amended from time to time. All payments (i.e., Deposit, Settlement Funds) must be in the form of wire transfer only.
ELECTRONIC FAILURES: Auctioneer is not responsible for bidding errors caused by internet outages, bid platform failures, or power failures.
PLATS/SKETCHES/DRAWINGS AND PHOTOS: Are not to be relied on. WE ARE NOT SELLING THE REAL PROPERTY. Existing legal descriptions are not guaranteed for complete accuracy. All acreage and dimensions are approximate and could be subject to change upon an actual field survey. All stakes, signs or flags indicating boundaries or location are for general location purposes only and are not to be construed as precise property corners. All property securing the mortgage is subject to recorded easements which include existing roads and planned roads, power line and other utility easements, ingress and egress easements, and other easements of record, if any.
BUYER'S NOTE: Auctioneer reserves the right to add or delete assets from this auction or to alter the order of sale from that published herein. Personal due diligence of the material is strongly recommended. Failure to perform due diligence prior to auction does not relieve purchaser of contractual obligations of purchase. Asset sells As Is - Where Is with no warranties expressed or implied. All settlement costs to be allocated pursuant to the Auction Note Sale Agreement. Sale shall be closed at the offices of Seller’s Designated Settlement Agent, as noted in Auction Note Sale Agreement, or as announced at the auction.
Information was gathered from reliable sources and is believed to be correct as of the date this material is published, however, this information has not been independently verified by Seller or auctioneers. Its accuracy is not warranted in any way. There is no obligation on the part of Sellers or Auctioneer to update this information. ALL ANNOUNCEMENTS MADE AT THE AUCTION TAKE PRECEDENCE OVER ALL ADVERTISING. The Sellers do not have any liabilities whatsoever for any oral or written representations, warranties or agreements relating to the property except as expressly set forth in the Auction Note Sale Agreement. There is no obligation on the part of the Sellers to accept any backup bids in the event the high bid falls through.
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