Foreclosure Auctions Gobble Up Hundreds Of Houses

All foreclosure auctions are not what they apparently appear to be. In South Florida one does not have to hunt around for foreclosure sales – the region is pockmarked with it. During the weekend the Broward County Convention Center was the venue of the nation’s largest foreclosure auctions. Valuable homes were going away for a song at the drop of the hammer. Hudson and Marshall hammered off more than 400 foreclosed houses at the auction.

The prime bidder was Rober DeVivo and few others. DeVivo does not think it is easy going all the way – the deal is not that cheap as it appears. The auctioneers are fast talkers but the bidders are ready for the game. Those participating in the bidding usually know the rules and come with their chequebooks as well as the realtor. The latter can give the information and details about the house – where it is, how long it has been waiting and what has been paid for it. Nevertheless the sparring is about taking advantage of the real estate market at this vulnerable point. Those who are not aware of the ins and outs of auctions might lose their money quickly. It involves certain amount of risk, which is all there in fine print, but the cursory reader might miss out on it.

The auction will benefit both sides embroiled in this foreclosure crisis. The lender is able to sell the unit off and realize money that had been lent out, the borrowers are relieved of their loans and others get a chance to buy a house that under usual circumstances would have been beyond reach.

It is unavoidable that many are going to lose their houses but from another angle, more auction sales means money will start flowing again in the housing market. It will pep up the economy. The investors are buying at 60 to 80 cents on the dollar but the really good properties are going for about 80 to 85 % of price list. The owner tries to sell the units without incurring a lost and the buyer aims at bargains. Platinum, a developer group tried to auction 20 new condos but failed because the price wanted was too steep. Only eight could be disposed of and that too because the developer was prepared to let it go at any cost.