Local News

Foreclosure auction held in Raleigh

Posted December 21, 2008
Updated December 22, 2008

— Foreclosed homes have been accumulating in the deteriorating economy, and the federal Real Estate Disposition Corporation (REDC) held its first auction Sunday in the Triangle.

“It makes me crazy. My heart is pounding. I feel really nervous,” bidder Julie Wills said of the auction process.

REDC auctions foreclosed properties for banks. At its Sunday auction at the Raleigh Civic Center, 46 foreclosed homes were sold to the highest bidders.

“There's a demand for a foreclosed home movement here in the Raleigh area as there is all over the country,” said REDC Senior Vice President David Lee.

A Raleigh home, pre-valued at $474,000, sold for about $200,000 less than the previous owner had paid for it.  It was that kind of deal that brought Al Chakra to the auction.

“I came with a friend of mine, and you know how the action goes, it is a fast pace. I'm sure it's a good price. I'll find out in a few minutes,” Chakra said.

Chakra bought a Fayetteville home for $20,000 at the auction.

The majority of the properties sold Sunday were purchased for about half of their previous values.

“It is obvious there's some very good opportunities here, but it's also kind of sad because you know other people have gone through very distressing times in order for this to come around,” bidder Neal Blue said.

“Every home that goes across the auction block is an asset that someone has lost. But that's the down side,” Lee said.

The upside is, “The more folks who buy, the less inventory there is, (and) the home prices will go up," Chakra said.

REDC is planning to return to the Triangle with a new list of foreclosed homes in March.

Home foreclosures in November across North Carolina fell 13 percent from October and were down nearly 30 percent from a year ago, foreclosure tracking firm RealtyTrac reported this month.

Nationwide, more than 259,000 homes received at least one foreclosure-related notice in November, down 7 percent from October, but 28 percent higher than a year ago, RealtyTrac said.

By the end of the year, REDC expects to have sold 20,000 foreclosed properties – worth about $3 billion – across the United States.


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  • determined2win Dec 22, 2008

    WRAL should post pictures of the house and the old owners that got booted out of the house they over-bought & then found out that they couldn't afford...

  • ncguy Dec 22, 2008

    What I don't get is why the lender did not make such a deal with the previuos owner? If the sale of the houses went for around 50 percent of value- would it not be better to tell the previous owner that he could cut his martgage by that amount and save everybody a lot of time and money?

  • seeingthru Dec 22, 2008

    sad.....to enjoy a bargain at the cost of others losses......so pitiful, and to brag about it??

  • Banker Mommy Dec 22, 2008

    That being said, what does cause the price to go down w/ foreclosures is when there are a lot of foreclosures in the area and you have to lower your price to compete to sell (supply v demand). So really, auctions like this are helpful. They take some of these houses off the market so not so many are competing with yours when you are trying to sell.

  • Banker Mommy Dec 22, 2008

    When appraisers value homes, they do not use foreclosures in determining the value. The only homes they use as "comparables" are ones that are listed on MLS (with a realtor). This means they also don't use "for sale by owner" homes either. This is how they avoid including anything that wouldn't be an arms length transaction (such as when someone sells to a friend at a deep discount).

  • DontLikeTheSocialistObama Dec 22, 2008

    They say one foreclosure in a neighborhood reduces the value of other homes in the neighborhood by 10%. More foreclosures reduce it by even more. Unfortunately this is only reflected in evaluations for selling purposes. Naturally it doesn't get reflected in evaluations used for tax purposes.

  • AARRGGH Dec 22, 2008

    Tax reevaluators will not look at how and when it was sold. Foreclosures are not used when appraisals are done. Some agents use them in CMAs just to point out a wide range of prices.

  • wcnc Dec 22, 2008

    I do wonder how much it reduces property values of other homes.....Can't you just point out that those houses were foreclosures and auctioned and don't represent the true value of homes?? I think that might work for selling....and of course for revaluations!

  • DontLikeTheSocialistObama Dec 22, 2008

    Selling houses 50% off reduces the property values for surrounding homes. Wait to go.