The Foreclosure Report

A "Perfect Storm" In Texas

ABC 13 reports from Texas. "There isn't a lot of good involved in a foreclosure, but there may be a way to get out from under a home about to be taken by the bank. Selling the house at auction just might be the way to avoid the financial ruin associated with a foreclosure. Foreclosures can be devastating if the bank will not work with you. The better option may be a quick sale and auctions offer that."

"One home near TSU is for sale, but instead of sitting on the market for weeks on end, it will be auctioned off to the highest bidder in two weeks and that house is not alone. 'We have about 70 properties that we are selling that day,' said auctioneer Kelly Toney."

"'We're basically trying to bring the buyer and the seller together and take the seller out of the middle of the equation and put the auctioneer there mediating the price up rather than negotiating the sales price down,' said Toney. 'It's another option for a seller in distress that keeps them out of further credit problems,' said Toney."

"'Sometimes there are great deals and sometimes the properties go for market value and above,' said Dwight Toney with Tranzon auctions. Buyers must be able to put down 10 percent of the auction price at the time of sale. They then have 30 days to come up with the rest of the money."

"The idea of buying at auction may seem odd, but it may be the right time to consider it. 'We almost have what we call the perfect storm if you are a buyer because you have a lot of property on the market,' said Steven Kaufman with the Realty Investment Club of Houston. 'Demand that is low, not as many buyers able to buy, and you have low rates.'"

"Kaufman says there are opportunities and the auction route could be worth exploring, but... 'If you know a realtor that is willing to look up some comparable sales for you in the neighborhood, I think that is a great idea,' said Kaufman. 'That's the best thing to do, to see what the house is really worth.'"

posted by Ben Jones @ 12:36 PM