Local News

Foreclosure auction held in Raleigh

Posted December 21, 2008 6:48 p.m. EST
Updated December 22, 2008 9:29 a.m. EST

— 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.