America's Foreclosure Epidemic

Tragedy for Some, Opportunity for Others

Hundreds of Texas Homes Hit Auction Block This Week

Hundreds of foreclosed homes in Texas are scheduled to be sold to the highest bidder in the next five days at public auctions scheduled all across Texas and on  the Internet. From a cozy bungalow in Amarillo to a lavish 5500 square foot, 5-bedroom, 9-bath mansion in Houston, the banks say they all have to go – Now!

Banks and government agencies, overwhelmed with the prospect of selling an avalanche of foreclosed properties have turned the job of moving 235 bank-owned properties out of the lender’s inventory, according to Hudson & Marshall, one of the nation's leading real estate auction firms, specializing in foreclosure listings. Recently, Hudson & Marshall of Texas Inc. has sold and closed over 40,000 homes throughout the country.

Traditionally, county sheriffs are responsible for conducting foreclosure auctions, but the recent foreclosure epidemic is stretching our nation's sheriff's resources to the limit.

According to RealtyTrac ( www.RealtyTrac.com ), Texas ranks among the nation's top 10 states for foreclosure filings, reporting 14,681 filings in September 2007. The foreclosure process starts when a homeowner is 60-90 days past due on a mortgage payment and the lender sends a default notice. If the borrower cannot pay the past due amount, the home enters into foreclosure and is auctioned by the county or sheriff, depending on the state. If it doesn't sell, the home is sold back to the bank and called "foreclosed" or Real Estate Owned (REO) properties.

With the foreclosure crises now in full bloom, lending institutions and government agencies are increasingly turning to auction houses, both on and offline. The largest online auction house in the world, eBay, currently has nearly 300 ongoing foreclosure related auctions . Thirty of the eBay foreclosure auctions are in Texas and the auction giant currently has nine properties in Texas that are for sale by the lender. In February eBay sold an entire Texas town on its auction  site.

"Buyers who were pushed to the sidelines of the real estate market several years ago because of escalating home prices, now have a chance to jump in the market," said Dave Webb, principal Hudson & Marshall. "Foreclosed property auctions like Hudson & Marshall's make it even easier for first time homebuyers and investors to purchase homes at a discount because our sellers are anxious to get these non-performing loans off their books," added Webb in a recent press release.

Auction locations include: Amarillo, Athens, Dallas/ Ft. Worth, Houston, McAllen, San Antonio, Waco and Wichita Falls. Bidders can also place sealed bids online.

The properties set for auction before Sunday include properties from the southernmost tip of Texas in McAllen where some lucky buyer may find himself the new owner of a three bedroom 2 ½ bath home to a snug bungalow 760 miles away in Amarillo in the Texas Panhandle. The Central Appraisal District shows the Amarillo property, currently valued at about $28,000 and owned by FANNIE MAE.

But don’t think the foreclosed properties available at auction are all smaller homes. There are many high-end properties including properties ranging in size from 5500 square feet to just shy of 2000 square feet on sprawling lots also set to be sold. Here are a few examples. But don't expect to pay the full appraised value. Typically, foreclosed properties may only bring half of the appraised values at auction - even less for some eBay auctions. 

Photo	Location	Appraised Value	Home size	Notes	Data Source and Resources
	Montgomery Texas Montgomery County Auctions	$145,370	3462 sq ft	7.31 Acres	Montgomery County Appraisal District 28th Fastest Growing County In the Nation
	Arlington Texas	$167,600	3,520 sq ft	Built in 1999	Tarrant County Appraisal District
	Paris Texas Lamar County Auctions	$295,850	4827 sq ft	105' x 150' lot	Lamar County Appraisal District
	Nevada Texas Central Texas Auctions	$874,938	7,021  sq ft	Two Acre Ranch	Collin County Appraisal District
	Prosper Texas Central Texas Auctions	$287,251	2,944 sq ft	Built in 2005	Collin County Appraisal District
	Dallas Texas Dallas County Auctions	$132,780	3,008 sq ft	1 1/2 Stories Built in 1957	Dallas County Appraisal District
	Palmer Texas Ellis County Land Auctions	$221,260	3694 sq ft	7050 sq ft	Ellis County Appraisal District 98th Fastest Growing County In the Nation

July-22-2008