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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
Your article explains how “The home buyer puts their trust in those helping them with loans the home buyer is not a bank, they dont fully understand loans.” Seriously? Are you stating that a home buyer should not be bound to the terms of a contract because he or she did not read or understand what he or she signed? In that case, I didn’t understand the terms of my credit card contract. In fact, I also didn’t understand the terms of my car loan and my student loan. Those mean old bankers are taking advantage of me. Boo-hoo. I won’t pay those RESPONSIBILITIES/OBLIGATIONS either. Here is an idea, if a prospective home owner does not understand what they are signing, send the contract to a lawyer. Get a second opinion. “I didn’t know” is no excuse for not fulfilling contractual obligations.
You are part of the problem by making foreclosure recipients victims.
JB,
I fully understand the responsibility and obligation of signing a contract. However, not everyone fits into the same box. There are circumstances that make for exceptions and I believe that where those homeowners who had extenuating issues, there should be exceptions made. I believe I outlined them in my article.
For those who were irresponsible and robbed their equity or lived way beyond their means I find no exception for.
Since I see and listen and look at documents everyday and see the pain of some of these folks, it breaks my heart that no exception is made for them but the ones who know how to work and milk the system find exceptions.
I thank you for commenting and sharing your thoughts and respect your opinion.