- Sacramento County
- Sacramento Real Estate Videos
- Placer County
- El Dorado County
- Yolo County
- Home Buyer
- Fun Things
- Realtor
- Seller
- Real Estate
- Mortgage
- Condo
- Statistics by City
- Investor
- Living Green
Archives
Sacramento Real Estate Gets Hit AGAIN by Auction Company
July 9th, 2007 categories: Foreclosure, Real Estate, Sacramento
Sacramento Real Estate once again will have an Auction Company hit our State Capital.
These Auction Companies are being asked to auction off homes in our area by the Lenders who gave out loans that are in default.
Last month we had Wells Fargo asking Real Estate Disposition Corporation Auction company to come help bail the bank out of their bad loans and this month Washington Mutual is asking Hudson & Marshall to Auction off 175 repossessed houses in the Sacramento area.
According to an article in the Sac Bee, Foreclosure Auctions Grow Bigger about 651 homes in Sacramento County have been part of this foreclosure/auction process where Home Buyers bought at the height of the housing boom with little or no money down and fell behind on payments as housing values fell. Feel behind? hmmm could it have been the loan that they were placed with?
Most of these houses are sold at auction for more money than their Real Estate worth. Auction, Repossessed Homes, Foreclosure are all key words that seem to bring about an aura of savings, discount and great buy. Many times this is a fallacy and one that the next home owner will soon find out, a little late.
No one wants to point the finger at these banks that had the opportunity to Just say, NO to the home buyer who was not qualified to purchase the house in the first place. The home buyer puts their trust in those helping them with loans the home buyer is not a bank, they dont fully understand loans. However, Mr. Bank, you do and look at what you have done!
How about taking a more responsible attitude and work with the current home owners to re-evaluate the loans that should never have been made, in the first place. Ive seen some of these loans with $16,000 penalties if the homeowner tried to refinance the loan and escalating payments with negative amortization. This is pitiful and in my opinion disgraceful. Instead, of conducting all of these Auctions, you should have been sitting down with these home buyers that you have foreclosed on and worked out a reasonable loan package. A little accountability would be nice!
I submit to you, Banks act responsibly and redo these pitiful loans that you authorized. Auctions and distressed Real Estate that are present in our neighborhoods bring the value down for everyone. Short Sales are not being accepted by the Banks, while the property is in somewhat decent shape, once foreclosure occurs, the property declines immensely. This is what you are leaving for the neighborhoods, Banks. Dont continue to bring the Real Estate value down.
The Auction bidder will be required to put down a percentage based on the house using a cashiers check, adding 5% as a commission to their winning bid for the house to pay for the Auction Company and I can only assume that again the Bank will be there to give yet another loan to the winning bidder. Wonder what type of lovely loan that will be?
Lets hope that those bidding, will have done their homework. Dont assume that you are a professional who knows the value and the condition of a house you may be in for a big surprise. Have a team of professionals, a Realtor, and a contractor to help you with the value and the cost involved in refurbishing the property before you ever set foot at the auction.
Sacramento will once again have the Banks auctioning off property at 1:00 pm on July 22 at Sacramentos Radisson Hotel with inspection of the houses scheduled for July 14“15th.
Wonder how many more banks will call for auctions? And I wonder how many of these new winning bidders will eventually loose the house that they think they got such a good deal on?
Related Articles:
Gena Riede of Sacramento Real Estate Voice on Channel 13 News
Sacramento Foreclosure Auction Looking for Suckers!
Sacramento Short Sales and Foreclosures
Are Short Sales and Foreclosures A Good Deal?
Foreclosures, Buy or Dont Buy?
Do You Understand Foreclosure?
2007 Where Knowledge is Power in Real Estate
What Sellers Need to Know About Receiving Offers
