The Foreclosure Report

Buffalo Moves Forward With Mass Auction

The Buffalo News reports on the big auction. "On the first day of Buffalo's most controversial foreclosure auction in years, winning bidders pledged nearly $925,000 for 225 properties."

"Three-quarters of the 886 properties that were up for sale Monday did not draw opening bids. But the first phase dealt with many vacant properties and empty lots in struggling neighborhoods."

"Officials said they expected more spirited bidding activity today and Wednesday, when properties in the North, Delaware, University and South Council districts are offered. Earlier this month, more than 3,700 properties were on the foreclosure list. By Monday afternoon, the number had dipped to fewer than 2,500 as people made payments or obtained court orders to delay the sales."

"In some instances, the city collected money from people who had failed to pay the garbage fee since the unpopular levy was imposed nine years ago. 'It proves what we've said since Day One; that foreclosure is the only effective vehicle for collecting what's owed to the city,' said Bruna Michaux, commissioner of assessment and taxation. Michaux predicted about 2,000 properties will have been put up for sale by the time the auction ends Wednesday."

"Housing Court Judge Henry J. Nowak (noted) that most of the structures have some housing code violations, he told them they will be expected to repair and maintain properties they buy. New owners who ignore the problems could face fines and even jail time, he warned."

"A reporter asked Nowak if he thought his comments might deter people from bidding on properties. 'It may discourage some out-of-town folks from bidding,' he said. 'It's a lot easier for someone living here to deal with [repairs].'"

posted by Ben Jones @ 8:59 AM