The Foreclosure Report

An Auction In Colorado

The Pueblo Chieftain reports from Colorado. "Temperatures hovered below the freezing mark and snow continued to cover the ground. But the inclement weather conditions didn't deter a handful of people who could be seen stomping around in the snow outside a vacant house in Pueblo’s Highland Park neighborhood on a recent Tuesday afternoon."

"What they had in common was the desire to get a terrific deal on the foreclosed house on Lynnwood Lane that was being auctioned by an Oklahoma-based auctioneer. By 4 p.m., the group had grown to include several dozen. Many waited in the relative warmth of their vehicles."

"Potential bidders were invited to fill out a form and exchange it for a bidding card. The door was opened to the house for the long-awaited inspection. Inside, the 1950s-style tract home appeared the polar opposite of 'staged.' Cold, bare and unadorned, its 1,064 square feet were laid out in a classic FHA floor plan with three bedrooms, two bathrooms and a spot in the kitchen for the clothes washer."

"Snippets of overheard conversation suggested similar questions and observations from the many lookers: 'How old is the heater?' 'What’s with the painted paneling on the living room ceiling?' 'See the water marks on the wall.' People continued to arrive and elbow their way through the house."

"Within the hour, people were asked to the carport area where the auction would begin. Forty bidders congregated on the cement slab in the fading light and freezing temperatures. 'Any questions?' the auctioneer asked."

"One bidder asked if the buyer was responsible for any previous liens or taxes. 'No, title would be free of any liens or taxes,' was the reply."

"Terms and conditions were reviewed. The successful purchaser would be responsible for a $5,000 deposit or 10 percent of the purchase price whichever was greater. Closing costs would include standard expenses such as title insurance and recording fees. The buyer also would pay a $3,000 service fee to get the home out of foreclosure. Closing would take place within 30 days."

"The bidding started and quickly ran up to $70,000. Two of the bidders competed until finally the house sold for $77,000 to Bryan Wilson. Wilson, who also owns 12 other rentals, said he’s not sure if he will rent it or flip it."

"The seller, Bank of New York Trust CO NA, has seven days to accept the high bid. According to the auctioneer, 95 percent of the bids are accepted. Assuming that Wilson’s bid is ultimately accepted, he will pay $77,000, plus closing costs for a home that sold in March of 2004 for $107,000, according to Pueblo County assessor records."

"A second property on Main Street in Rye auctioned quickly for $56,000 and the auction was over."

posted by Ben Jones @ 9:04 AM