MOUNTLAKE TERRACE — Hundreds of computers, along with office cubicles and even the potted plants went on the auction block Friday at the headquarters of bankrupt lender Mortgage Investment Lending Associates Inc.
The event is an epilogue to a business that rose fast, employed hundreds of local people and then disappeared quickly in April as the subprime mortgage business — home loans to people with poorer credit — collapsed around the country.
As the auction moved to the upper floors of MILA’s building, buyers carried out computers, monitors and fax machines by the armload.
“It ranged from OK to good, but I don’t think anyone got a bad deal,” said Dennis Weems of Everett, who was carrying out a computer for his small business.
Joseph Small of Maple Valley had trouble fitting his bargains in his car. He ended up leaving a monitor on the sidewalk, offered to whoever wanted it. He picked up a decorative metal table worth several hundred dollars for just $87, as well as several laptops and desktop computers, including some for his grandchildren.
“They’ll really, really like these,” he said.
The auction catalog included more than 2,000 auction items, including virtually all the office equipment, furniture and even small things like decorative paintings and individual toner cartridges for printers. Tim Murphy, president of the auctioneer firm James G. Murphy Co., said the event attracted between 500 and 600 people, including some from neighboring states. He agreed with one prospective buyer who said the size of the auction reminded him of 2001 and 2002, when the bust of numerous Internet and technology companies in the region meant frequent sell-offs like Friday’s.
Founded 23 years ago by Layne Sapp, who grew up in Marysville, MILA boomed with the nation’s home-buying spree. At its height in 2005, the company’s 700 employees occupied two multistory office buildings Sapp owned in Mountlake Terrace and Lynnwood. That year, the company funded more than $4 billion in mortgage loans, ranking it among the top subprime lenders in the country.
But by 2006, the company had to scale back its staff.
And just ahead of the credit crunch in the lending industry that would rock the financial markets this summer, MILA suddenly shut down in mid-April, laying off its remaining 300 employees. At the time, Sapp said he held out hope that the company’s assets would attract a buyer, avoiding the need for bankruptcy.
In July, however, MILA filed for Chapter 11, listing $7.9 million in assets and $174.7 million in liabilities. A trustee appointed later that month was charged with liquidating the company.
One thing that hasn’t sold is the headquarters building, which Sapp — who was spotted at Friday’s auction — still owns.
Jon Bauer of CB Richard Ellis said the building is available for lease or, ideally, for sale. In December 2002, Sapp’s CRS Financial bought the previously empty building for $6 million. Its assessed value today is more than $11 million, according to Snohomish County Assessor’s property records.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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