FBI Stalks Foreclosure Auctions For Irregularities

Foreclosures are leading to auctions. The auction venues have become carnival gatherings not only for those genuinely seeking shelter but also for speculators who want to make a fast buck. If given a free hand these speculators and profit hungry investors would make the foreclosure situation murkier, adding to the woes of the nation and the individual. The annual foreclosure auction at Buffalo has unexpected visitors – the FBI. The Anti-Flipping Task Force of the city is cooperating with them to keep track of irregularities. Several law enforcement agencies have also joined hands to monitor the auction being held at Buffalo Niagara Convention Center.

A general covert warning was given out by Lynch, the spokesperson of the Task Force that it is good news that people have come forward to invest and set up their homes in the new houses and in the process raise the value of the properties. Buffalo however is not going to be allowed to become a happy hunting ground for quick profits. It was not just empty talk because one of the tools devised for this purpose was to have potential buyers sign an affidavit. It will prohibit the sale of the unit within the next six months for more than a profit of 20%. It will check flipping – buying low priced houses and selling them quickly for high profits without adding any improvements.

Housing Court Judge Nowak strung another note of warning when he said that most the properties had code violations that would have to be seen to. The sale covers thousands of units taken by the city because of property taxes not having been paid.

Most of the houses were sold for less than $20,000 each. Only one on Richmond was sold for $70,000.

So far this has been a great way for landlords to acquire new rented estates. There are good landlords in the fray also. Many of them like Mark Davis would like to live off the rent when he would retire. Mark has now five properties. Jesse Zuefle is a buyer to who Buffalo is hometown. It is the architecture of the buildings that is the deciding factor for him. Another point is that it is next to three other houses that he already possesses. The hope is that once fixed up these will provide a steady source of income during the evening years of his life.