Few Bidders At Foreclosure Sales
Business hasn't been too good for real estate investors who buy property at foreclosure auctions. The following summary are from stories around the country reflecting a dearth of good deals at these foreclosure auctions.
Alameda County, California - Of the 12 properties in foreclosure that went up for auction on one day, only one attracted any bidding interest. There were no bids on the remaining 11 properties, which meant they automatically became the property of the foreclosing mortgage lender. For the one property in which their was bidding interest, the holder of a second mortgage on the property was the successful bidder. Foreclosure auctions attract few bids (More homes go on the block, but low equity tempers bidder interest).
Orange County, Florida - More than a dozen potential investors showed up at the courthouse for the daily auction one day. All of them left empty-handed. Of the 12 properties up for auction Tuesday, a guy in shorts and sneakers and others representing the foreclosing mortgage lenders bought all 12 back without a single opposing bid. Gloomy times for profiteers of foreclosures (no longer available online).
Rock County, Wisconsin - In the entrance to the Rock County Courthouse [recently], the auctioneer stood with a list of 13 foreclosed homes - a big stack for one day. In front of a group of attorneys, potential buyers and the curious, he read the prices of properties. No one bid, and the homes all became the property of the foreclosing lender. County's civil process division stays busy even with assistance.
Blue Earth County, Minnesota - It’s a scene repeated regularly, and far more often, in the lobby of Mankato’s Law Enforcement Center: Deputy reads legal notice on a home mortgage foreclosure, bank representative makes a single bid (almost always without a challenging bidder) and someone’s dream of home ownership officially comes to an end. Statistics show mortgage squeeze in area (Attorney advises early response to deepening debt).
Palm Beach County, Florida - At a recent Palm Beach County foreclosure sale, the first thing that struck one attendee was how easy it was to find a seat. A year and a half ago, the room was brimming with eager investors. The second surprise was that no one among the 15 attendees was bidding. The banks took back every one of the 20 mortgage foreclosures on the block. In a conversation later with a regular foreclosure buyer, it was learned that investors are still stuck with property they bought months ago. Capital Sources (Beleaguered borrowers get help).
California - Reportedly, in California, 95% of all foreclosed homes sold at trustees' auctions (foreclosure sales) are being acquired by the foreclosing mortgage holder. For more, see (Editor's Note: disregard the potentially misleading title) Investors Buying More Homes at Auction in California (More current loans are coming into play at auctions of foreclosed homes).
Queens County, New York - At a July 13 foreclosure auction at the Queens County, N.Y., Supreme Court building, only four of the 18 properties auctioned that day attracted any bids from the public. The rest, observers said, ended up in the hands of their mortgage lender. Let the Home Auction Bidder Beware.
Metropolitan Phoenix - Reportedly, about 85 percent of the Valley homes foreclosed on in July went back to the lender. That means fewer investors bidding on foreclosure properties on the courthouse steps. It's deal time with 55,000 homes listed.
New Castle County, Delaware - Over the past year, banks have had to buy back more properties at foreclosure sales. Of the sixteen homes one bank attorney bid on in one recent auction, only one was sold to a third party -- and the bank let that one go because it was worth less than what was owed. Bargains can be found, but buyers beware (Sheriff's sales of foreclosed homes hold pitfalls for the novice).
Kern County, California - Regulars at public auctions have noticed a startling change of late in the bidding. Two years ago, 95 percent of homes were snagged by eager bidders, one auctioneer estimated recently. These days, about 90 percent go back to the bank. The second loans left from so-called 80/20 "piggyback" deals, which required no money down, typically get eaten. In one recent auction, for example, a house came up for auction, with $333,484 owed on the mortgage. The lender started bidding at $200,000. Still, no one nibbled, and the house went back to the bank. Foreclosure snapshot an eye-opener (Ninety percent of auctioned homes go back to the bank).
Washington State and Oregon - According to its Web site's statistics, 41 percent of the foreclosure auction sales tracked by USA-Foreclosure.com (a company that sells foreclosure information to investors) ended up in the hands of third parties. Meanwhile, in Oregon, 27 percent went to third-party purchasers. Foreclosure Auctions Up in Washington and Oregon.
Alameda County, California - Of the 12 properties in foreclosure that went up for auction on one day, only one attracted any bidding interest. There were no bids on the remaining 11 properties, which meant they automatically became the property of the foreclosing mortgage lender. For the one property in which their was bidding interest, the holder of a second mortgage on the property was the successful bidder. Foreclosure auctions attract few bids (More homes go on the block, but low equity tempers bidder interest).
Orange County, Florida - More than a dozen potential investors showed up at the courthouse for the daily auction one day. All of them left empty-handed. Of the 12 properties up for auction Tuesday, a guy in shorts and sneakers and others representing the foreclosing mortgage lenders bought all 12 back without a single opposing bid. Gloomy times for profiteers of foreclosures (no longer available online).
Rock County, Wisconsin - In the entrance to the Rock County Courthouse [recently], the auctioneer stood with a list of 13 foreclosed homes - a big stack for one day. In front of a group of attorneys, potential buyers and the curious, he read the prices of properties. No one bid, and the homes all became the property of the foreclosing lender. County's civil process division stays busy even with assistance.
Blue Earth County, Minnesota - It’s a scene repeated regularly, and far more often, in the lobby of Mankato’s Law Enforcement Center: Deputy reads legal notice on a home mortgage foreclosure, bank representative makes a single bid (almost always without a challenging bidder) and someone’s dream of home ownership officially comes to an end. Statistics show mortgage squeeze in area (Attorney advises early response to deepening debt).
Palm Beach County, Florida - At a recent Palm Beach County foreclosure sale, the first thing that struck one attendee was how easy it was to find a seat. A year and a half ago, the room was brimming with eager investors. The second surprise was that no one among the 15 attendees was bidding. The banks took back every one of the 20 mortgage foreclosures on the block. In a conversation later with a regular foreclosure buyer, it was learned that investors are still stuck with property they bought months ago. Capital Sources (Beleaguered borrowers get help).
California - Reportedly, in California, 95% of all foreclosed homes sold at trustees' auctions (foreclosure sales) are being acquired by the foreclosing mortgage holder. For more, see (Editor's Note: disregard the potentially misleading title) Investors Buying More Homes at Auction in California (More current loans are coming into play at auctions of foreclosed homes).
Queens County, New York - At a July 13 foreclosure auction at the Queens County, N.Y., Supreme Court building, only four of the 18 properties auctioned that day attracted any bids from the public. The rest, observers said, ended up in the hands of their mortgage lender. Let the Home Auction Bidder Beware.
Metropolitan Phoenix - Reportedly, about 85 percent of the Valley homes foreclosed on in July went back to the lender. That means fewer investors bidding on foreclosure properties on the courthouse steps. It's deal time with 55,000 homes listed.
New Castle County, Delaware - Over the past year, banks have had to buy back more properties at foreclosure sales. Of the sixteen homes one bank attorney bid on in one recent auction, only one was sold to a third party -- and the bank let that one go because it was worth less than what was owed. Bargains can be found, but buyers beware (Sheriff's sales of foreclosed homes hold pitfalls for the novice).
Kern County, California - Regulars at public auctions have noticed a startling change of late in the bidding. Two years ago, 95 percent of homes were snagged by eager bidders, one auctioneer estimated recently. These days, about 90 percent go back to the bank. The second loans left from so-called 80/20 "piggyback" deals, which required no money down, typically get eaten. In one recent auction, for example, a house came up for auction, with $333,484 owed on the mortgage. The lender started bidding at $200,000. Still, no one nibbled, and the house went back to the bank. Foreclosure snapshot an eye-opener (Ninety percent of auctioned homes go back to the bank).
Washington State and Oregon - According to its Web site's statistics, 41 percent of the foreclosure auction sales tracked by USA-Foreclosure.com (a company that sells foreclosure information to investors) ended up in the hands of third parties. Meanwhile, in Oregon, 27 percent went to third-party purchasers. Foreclosure Auctions Up in Washington and Oregon.
posted by Home Equity Theft Reporter at 9:43 AM
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