A dozen or so bargain hunters waited in the Southeast Texas summer heat to see which homes would be auctioned off today.  With over 60 Notices of Trustee Sale filed with the Clerk’s office some curious onlookers had come to watch for the first time.  There were also the regulars attendees.  We have a few veteran buyers here in Jefferson County that attend all the foreclosure sales.  They come prepared.  You can spot the regulars.  They come with notebooks in hand, excel spreadsheets ready, and digital photos of the subject properties.  They are the serious auction buyers.

No longer a beginner, but not near an expert, my experience falls somewhere in the middle.  Today, I learned something new.  When a bank puts a low bid and a high bid on a property that is up for foreclosure you won’t be able to buy it for the low bid.  One home in Delaware Place was auction today.  The low bid $150,000.  The Jefferson County Appraisal District values the home at $295,270.  Wow!  $150,000 sounds like a steal doesn’t it.  I thought so.  So curious me asked a very knowledgeable veteran why no one bid.  His answer to me was that when there is a low bid and a high bid set by the mortgage company, you can make the low bid but the mortgage company will keep going up in price to the high bid.  Sounds a little confusing.  I’ll have to learn more about that. 

About 18 homes of the 60 plus were actually auctioned.  The other homeowners had worked out arrangements to stop the foreclosure process.  That’s good news for them. The banks do seem to be willing to work with homeowners these days.  Countrywide just worked out an extension with a home seller I know. They’d rather give him more time to sell the home than have another foreclosure on their books. Of the eighteen homes auctioned, only two were bought by bidders.  One town home in Park Meadow went for $60,000.  The minimum bid was $59,900.  The other home was on Landers.  Two bidders bid on that one.  The winner got it for $55,000 and change.

Its an interesting process to watch these foreclosure auctions.  Next auction date is July 1st.  Its going to be another hot day on the court house steps.