Some get bargain houses at foreclosure auction

Michigan Foreclosure & Real Estate News

Article Abstract: 16 Michigan foreclosed homes went up for auction last week. One man bought a two-story town house for $177,000, a savings of over $60,000.  This was just a part of the most recent auction as more than 500 properties have been sold since May of 2007.  Continue reading the full Michigan foreclosure auction article below:
_________________

From the minute he stepped into the towering brown structure on Cascade Road SE, Craig Clark knew he was home.

He already owned a house, but that didn't matter. The Grand Rapids man said he was more than happy to move so he could take up residence in his "dream home."

The two-story house, originally listed for sale at $234,900, was snapped up by Clark for the bargain price of $177,500 -- its top bid in Wednesday night's Grand Rapids auction.

Local investors, flippers and real estate agents turned out for a bidding war on 16 foreclosed homes in the area.

Hudson & Marshall Inc., a Dallas-based company, added Grand Rapids to its list of Michigan cities with a growing number of foreclosed properties.

The company held auctions in Detroit, Battle Creek, Lansing and Jackson earlier this week, and is to do the same in Muskegon today.

More than 500 properties were up for sale from May 19 through today as part of the event, about 300 of which were auctioned off in Detroit. Hudson & Marshall is hired by lenders to help unload the foreclosed homes.

For Canton Township native David Smith, this is the year to invest. Smith, owner and flipper with D & S House Designs, has purchased five homes in the past four days. The investor followed Hudson & Marshall from Detroit to Grand Rapids, stopping only in Lansing to bid in between.

He called the auctions the "best-kept secret" for his career, which he hopes will grow as foreclosure rates rise and real estate costs decline in Michigan.

The state ranks 10th in the nation for the most foreclosures, with 29,467 in the first quarter alone. This year, 72 percent of foreclosure notices published in Kent County went to sheriff's sales, a hike from the 60 percent shown last year.

Real estate agent Abby Cook said her agency and others are trying to keep pace with the "unbelievable" amount of foreclosed properties.

Members of her Grand Rapids firm, Five Star Midwest, appeared Wednesday to watch some of their properties find a new owner.

"The market is tough right now, and auctions are a quick way of selling off the houses," she said.

And although houses are selling, those numbers are not measuring up to past years. Home sales fell 6 percent last month compared to April 2006, and real estate agents said it is likely to get worse.

An increase in defaults on subprime loans is causing the foreclosure market to inflate. The number of foreclosure filings jumped 35 percent nationally this year, according to RealtyTrac.com, an online market watcher.

 

Article Source http://www.mlive.com/business/grpress/index.ssf?/base/business-4/1180014542327330.xml&coll=6