Foreclosure Auction Numbers Going Up And Up

August 6th, 2007 | Tags: Auction

Everyday there is a party going on at the foreclosure auction site – seasoned professionals with cell phones and novices warily testing the waters. Dressed in casual wear it is mostly men who dominate the scene at the Alameda county Courthouse in Oakland. It is the same scene repeated at San Mateo, Contra Costa and San Joaquin Counties.
There are more houses than bids. Few qualify for the minimum price tag. At times the party looks thin. There were 12 properties in the Livermore condominium but only one drew interest from investor Francis Ho and the lender. The others units automatically referred back to the mortgage lender. Ho argued that the fallen equity does not make it worth to call higher. In the Bay area the situation is grim – more foreclosures and less buyers.
Data Collectors say that in Alameda County in June this year 150 went into foreclosure. Last year the figure was 74. In Contra Costa the contract was higher with 408 against 70 of the previous year. In Solano, Joaquin and San Mateo Counties the number pairing was 216/44, 293/ 62 and 40/10 respectively for 2007 and 2006. Most of these units were taken by borrowers on the sub-prime scheme said another real estate consultant. There had been no down payments, which means there is now little equity – at least not enough to attract buyers.

Some give a fight and are not willing to give up easily. Septuagenarian Dorothy Hicks a retired federal employee is opting for short sale option without going through routine foreclosure. This means that with the approval of the lender she is trying to directly sell her unit at less than the mortgaged price. If her move fails within few weeks then it will be sold at a foreclosure auction, the date for which has already been fixed.

Hicks is complaining that predatory lending promising lower monthly instalments had pushed her into this unforeseen crisis. It is all a ploy that ultimately leads to high interest. Under the law lenders can proceed with foreclosure auction three months after sending out of defaulting notice.
Buying a foreclosed unit entails many risks – outstanding dues, taxes and unpaid maintenance bills. The bid usually starts with the basic mortgage dues. Money must be ready either as cash or cashier’s check. Foreclosure purchases require grit and stamina – definitely not for the meek and humble.