The Foreclosure Report

Now Come The Banks

The Sacramento Bee reports from California. "First it was individual homeowners who turned to the auction block to sell fast at a discounted price. Then home builders. Now come the banks. Home loan lenders, stuck with rising numbers of repossessed homes, will auction 242 houses next month to bidders in Sacramento, Modesto and San Mateo."

"It's the biggest home auction in Northern California in the wake of a five-year housing boom. The auction especially signals a new sales rival to home builders, investors and individual sellers: the banks."

"Robert Friedman, chairman of REDC, said buyers typically get a 10 percent to 20 percent discount from asking prices, while banks get quick results. 'It's just a business decision. You sell them quickly and take your hit,' Friedman said. 'In the long run they do it better by taking this route.'"

"Keith McLane, who runs a separate Carmichael-based home auction firm, said the sheer number of houses being auctioned next month "illustrates the quantity of foreclosures that are out there."

Foreclosures.com reports that banks owned 661 homes in April in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties. That's up from 92 in April 2006."

"Statewide, banks owned nearly 5,500 homes in April, according to the Web site. The same month in 2006 it was 1,111. Many of those still haven't reached the market, said Foreclosures.com's Alexis McGee."

"Demand is high when they do, said Luann Richardson, a Fair Oaks-based real estate (agent). 'Everybody wants a deal right now. There's very strong demand for a deal,' she said."

posted by Ben Jones @ 1:46 PM