It was auction day again.  Since the last foreclosure auction in June about seventy notices of trustee sale had been filed with The Jefferson County Clerk’s Office. 

So how does a homeowner get into a foreclosure nightmare?  For some it was the loose lending of the past several years.  Banks were eager to lend to anyone.  Your ability to repay the loan wasn’t as important as your willingness to buy.  Homes were going up in value.  No one was losing their home because you could just sell it for a profit if you got in trouble making your payments.

These days homes aren’t going up in value as fast.  Some home owners are even upside down.  A lot of us have probably experienced being upside down on a car.  The day you drive a new one off the lot you are usually upside down.  That is – you owe more than you could sell it for.  What do you do when you owe more to the mortgage company than you can sell your home for?  For some people, foreclosure is the only alternative. 

There are probably just a few bad money managers out there too.  They just spend more than they can afford and the bills keep adding up.  One thing leads to another.  They get behind on the mortgage and then their home is being foreclosed. 

Regardless of the "hows" and "whys", Eighteen homes were auctioned off today. 

Cold, hard facts:

• Only two of the eighteen were bought by bidders.  One on Arrowhead in Beaumont.  The other on Gladys.
• The most expensive "minimum bid" on one of the foreclosures was $244,241.78.
• The least expensive "minimum bid" was $17,500.
• Sixteen homes were bought back by the mortgage holders because no one bid the minimum bid.
• 2136 Orange Street was auctioned for a minimum bid of $18,000.  No bidders.  The mortgage company bought it back.
• 9355 Josey Street was auctioned for a minimum bid of $88,688.79.  No bidders.  The mortgage company bought it back.
• 5070 Avie Lane was auctioned for a minimum bid of $121,500.  No bidders.  The mortgage company bought it back. 

Notices of trustee sale are already being filed for the next foreclosure sale.  It will be August 5, 2008.  How many homes will be auctioned that day?  We’ll have to wait and see.  Hopefully, the number will be less than eighteen.  But its unlikely that it will be zero.