Monday, February 12, 2007

Bulk Sales Planned In New York

The Democrat & Chronicle reports form New York. "Roughly one-third of the tax foreclosure properties recently listed for sale at a city auction were in the 14621 neighborhood in northeast Rochester. So Joan Roby-Davison was concerned when the city this month proposed a bulk sale pilot program, allowing investors to buy more than the current limit of three city-owned properties at one time."

"Many of the foreclosed properties are among the 165 properties to be included in the pilot. And most if not all those properties are in the crescent, a 7.5-square-mile swath of impoverished and problem-plagued neighborhoods that wraps around downtown's perimeter from the northeast to the southwest."

"'We already have a concentration of these poverty and rental units,' said Roby-Davison, executive director of Group 14621 Community Association Inc. Only 5 percent of houses sold at auction end up as owner-occupied homes, and she said the pilot program appears unlikely to improve that figure."

"Mayor Robert Duffy pitched the bulk sale idea as a way to maintain if not increase the inventory of properties on the tax rolls."

"And the pilot program gives the city more control over the potential buyers. Unlike participants in normal auctions, potential buyers must pre-qualify to bid on properties, demonstrating the financial and organizational ability and know-how to take on multiple properties. Winning bidders cannot own any tax-delinquent property in the city or any property with code violations. They must put down a sizable deposit and complete any needed repairs within 12 months of closing."

"'One of the concerns we do have is being able to control the out-of-town interest in our properties, especially those the city is selling directly,' said Robert Barrows, director of housing and project development for the city."

"Last year, one in every five bidders at the city's tax foreclosure auction was from out of town. That ratio increased to one in four this year, officials said. City officials said properties owned by out-of-town landlords are more likely to have problems than those with local owners."

"Rochester has one of the nation's most unbalanced housing stocks; rentals comprise 60 percent of occupied units."


At 3:12 PM, Blogger Dr Housing Bubble said...

From coast to coast the market is deflating. No blue or red states, this market cares not that you have an interest only suicide loan.

Dr. Housing Bubble


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