The large number of foreclosures across the country have led to a glut in the market. Instead of people clamoring to the courthouse steps to find a deal, now these sheriffs auctions are sparsely attended. The problem is that many of the homes that are being sold are upside down, meaning the bank is trying to get more money than any reseller can hope to sell it for.
But the large auctions provide the critical mass of people to get these homes moving. While prices did not go through the roof, three quarters of the homes sold at a Mesa auction held this weekend that was attended by over 2,000 people.
Meanwhile another auction in Oregon were sold 141 homes for one builder over the weekend. The glut of inventory allowed Buena Vista Custom Homes to unload nearly 65 million dollars in inventory allowed the builder to generate cash while giving deals to new homebuyers. The builder said that 96 percent of the homes sold below his cost but freed up money to keep his business afloat. Approximately 1,400 people attended this 2 day auction.
Velocity in any market is important and the use of the large scale auction may just pump a little life into the lower end Phoenix market.
Before last year, most of the homes in default sold at trustee auctions on the steps of the Maricopa County courthouse. Now there are few bidders for those auctions because many of the houses are worth less than what is owed on them.
Auction firm Hudson & Marshall handled the recent auction in Mesa. Values of the houses to go on the block ranged from $100,000 to $600,000. All had been taken back by big U.S. lenders. More than three-fourths of the properties sold for prices ranging from $75,000 to $465,000. via the Arizona Republic
Click here to for a Free Foreclosure search in your area if you are still interested in getting into the foreclosure game to find properties near your home.
No related posts.
{ 6 comments… read them below or add one }
Seems like this type of event is really a huge draw these days. With so many foreclosures and all…
There have been a number of these in my area and all have been a success. I think only one failed to off load 100% of the inventory at the auction.
These auctions are such a BIG BIG SCAM, in truth there NOT really auctions! An example would be when these aution companys are getting ready for an auction they send out there magazines along with publishing these homes on there web sites that are to be auctioned off..
There is generally a minimum bid, or starting price and this is where the deception begins.. What most folks don't know is that there is a Secret RESERVE price and when they believe there the winning bidder only to find out it's just an offer they made, TRUE, JUST AN OFFER! Generally it goes something like this: The banks will get back to you within 14 days with an acceptence or a counter ..and from what I've heard it's always a counter!!
This is not a real auction!
Whats sad is that most people will get caught in the frenzy mode at the auction and most don't read the small and I mean small print on the back page of there homes to be auction magazine, it's right there "
"""ALL HOMES HAVE A "SECRET RESERVE PRICE""""
One more thing.. And guess who these Sacramento home auctioneers have representing them at the auction with the lending of funds on these homes??
..you got it!
Mr. SUBPRIME themselves "COUNTRYWIDE"
Unfortunatley, this is a sign of the times. With so many foreclosures and all…
We Stop Foreclosures and Help you Stay in your Home with a Modification. A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.
Call Me John Kinney 1 800-556-2137