Foreclosure Auctions are Becoming Popular

April 2nd, 2009 | Tags: Foreclosure Auction

Foreclosure auctions are becoming more and more popular and drawing many bidders. On 22nd March Sunday, the Seymour family drove all the way from Greenville to Dallas to try and buy their first house. There were 200 others like them crowding in the airport hotel to participate in an auction where about two- dozen foreclosed houses would be put up for bidding.

Wes Seymour had attended another auction but failed to win. He lives with his wife and son in an apartment and has been following auctions keenly. They want to move into an affordable cheap home.

This Sunda,y luck favoured Seymour and his bidding for $35,000 made him win the round. He walked off with a house having three bedrooms, two bathrooms close to Lake Tawakoni. The price was half of what the property had recently been appraised for while calculating taxes.

The treacherous economy has a flip side – it is opening up opportunities for ordinary Americans to pick up homes that suited their pockets. Nationally nearly 45% of the current sale of residential houses came from the foreclosed category or were in distress. This is according to the findings of National Association of Realtors. In Dallas-Fort Worth region almost 10% of the listed houses were foreclosed ones.

In 2008 the banks had foreclosed upon over 21,000 units including condominiums and town houses in Dallas-Fort Worth. On the one hand although it spelt pain to many there were others who found opportunities in them. Little wonder then that investors and first time nest builders were queuing up for these auctions of foreclosed homes. They came in hundreds after having done their homework and combed through real estate lists online or contacted agents. More often than not they do manage to snap up bargains.

Hudson & Marshall conducted this particular auction held on 22nd March – Dallas based professional auctioneers. Many units were sold at prices that were less than its taxable worth. For example an uptown condominium that had been appraised by tax authorities for $180,000 was sold for $90,000. Another McKinney McMansion originally priced at $845,000 was sold for $417,000 at the auction.

However not all are good bargains. There are pitfalls and disappointments. Realtors have repeatedly given out warnings not to expect windfalls with each unit. But most of the bidders come with the hope “to get a foreclosed house for 50 cents on the dollar,” said real estate agent Seychelle Van Poole.