Foreclosure Houses to be Auctioned in New York and Newark
Nearly 120 foreclosure houses will be auctioned off in five cities in the Northeastern part of the U.S. this September by an auction firm specializing in foreclosure properties.
According to the auction firm, all of these foreclosed homes are bank-owned, indicating the decision of banks to move their foreclosure inventories quickly by selling them at auctions. Many banks are saddled with large inventories of foreclosures so they have to sell them at substantial discounts to be able to move them. Maintaining these foreclosure properties entails additional costs and lost investment opportunities.
A total of 50 foreclosed houses will be auctioned off in Newark and in New York City while about 30 houses will be sold off on-site at the addresses of the properties. Approximately 17 units will be sold off exclusively online.
Many foreclosure properties are now sold online as prospective home buyers now turn more to the Internet when looking for foreclosures to buy. Buying and selling properties on the Internet has significantly reduced the costs of finding and buying a home as agent or broker commissions are reduced significantly. Some online sellers even share part of their sales commissions as rebates to the home buyer.
Each of the foreclosure houses have been packaged with title insurance policies purchased by the sellers for the buyers. Individuals who are planning to participate in the auctions are advised to register and deposit cash or check in the amount of $2,500 for every property won in the bidding. A 5-percent buyer’s premium will also be added to the bid price.
The auctions will be held in the cities of Manchester, Cherry Hill, Hartford, Trenton, New York and Newark.
According to real estate analysts, investors and homebuyers are participating in foreclosure auctions to find foreclosure bargains. Based on a report from the National Association of Realtors, more and more prospective home buyers are now coming out to pursue their home purchase plans.
In the past 6 months, the number of home purchase contracts has risen significantly. Sales of previously-owned homes increased in the Northeast in July by more than 13 percent to an adjusted annual pace of 930,000, much higher by 3 percent than the adjusted annual pace in July 2008. The average sales price of a house in the Northeast in July was $236,700.
Lastly, prospective auction participants are advised to view the foreclosure houses before the auction by contacting the agents because each of the properties is sold as is.
