At a rate of about one property every 2.5 minutes, bank owned properties are going, going, gone…the tuxedo clad, high energy, “auction assistants” are coaxing bids out of a poker faced crowd.

I am indeed sitting on the floor because it is a full house here at the Doubletree Hotel “grand” ballroom off Arden way in Sacramento at the REDC auction you can find out more about at http://www.auction.com. Most properties seem to be selling for between 3 and 4 times the opening bid, which is still a good deal if you believe the “previous values” listed on the program.

In my market, very, very few properties have gone to this type of auction. If, however, you are interested in Sacrameto real estate, there’s plenty here to choose from. There’s even a slightly tempting 19 acre parcel in Oak Run where my good friends Tom and Wendy live.

About 20% of properties for which the gavel comes down are being reauctioned a few minutes later for reasons of the buyers failure to qualify or prove funds to close. This qualification takes place at a bank of laptops at the far end of the ballroom. A number of the properties are proclaimed “sold, pending seller approval.”. I’ve been told this means that the bank which owns the property has 14 days in which to approve or reject the deal as the reserve was not met and that about 80% of these actually proceed to closing.

My client is hoping to buy a bank owned property in Tuolomne county that he already tried to buy twice through a normal mls sale. Both times the bank rejected the deal. We are going to be up toward the very end of the auction-only about 25 more properties to go. Wish us luck!!

(Oak Run parcel just sold for 17,500 for 19.8 acres.)

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Many of you ask about foreclosure activity and opportunities in our market.¬† I answer that I rarely see them in San Francisco itself¬† And as reported this week on sfgate.com per DataQuick: of the 18,516 notices of default recorded in the Bay Area in the 2nd Quarter, only 418 were in SF — that’s about 2.2% of the total. Of all the Bay Area counties, SF also had the lowest year to year gain in defaults: 62.6%.

They estimate that approximately 78% of those receiving notices of default will be foreclosed upon with “22% emerging from the foreclosure process by catching up on their payments, refinancing or selling.”
The entire article is here: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/07/22/BUE511T63B.DTL&tsp=1

Sfgate now has a search engine for Bay Area foreclosures, updated weekly, which can be searched by county, city or zip code: http://www.sfgate.com/webdb/foreclosures/

If you have questions about a distressed property, or you have a friend who needs to buy or sell, please get in touch and I will be happy to use my experience with short sales and foreclosures to work!