CNN writes about a foreclosure auction of 500 properties in Michigan. The process to get to an actual auction is described as follows:
Most of the properties have already gone through the entire foreclosure process. First banks took them back from borrowers who fell behind on payments. Then, they then put them through public foreclosure auctions (often held on county courthouse steps) where the homes failed to sell. The banks then cleared any title issues and put them back on the market through a traditional real estate broker.
If the properties sit for 90 days or more on the market, with expenses piling up, banks get very impatient. That’s when they call the auction houses, which attempt to make quick sales. The sale is usually a very simple transaction.
“Unlike a foreclosure sale on the courthouse steps, all these homes are sold free and clear, no liens, no debt. The seller even pays for title insurance,” said Dave Webb, one of Hudson & Marshall’s owners.
Business is apparently quite good:
Business, according to Webb, is jumping; it grew 20 percent during the first quarter of 2007, usually a slow period for the company, compared with the fourth quarter of 2006. He anticipates even better times for the next year or two.
Talk about a great deal…
The prices will vary widely but, some people will walk away with homes for less than $5,000, according to Crystal Wright, spokeswoman for Hudson & Marshall.
