Buyers Get Foreclosed Home Auction Bargains in Dallas

Home buyers and investors are getting good foreclosed home auction bargains in Dallas, according to a report from Foreclosure Listing Service in Addison.

Homes bought from foreclosed home auction events in Central and North Texas courthouses were sold at about 64 percent of the normal price.

But because of the unusually large numbers of buyers who are looking for bargain-priced properties from foreclosed home auction events, there are many prospective buyers who are unable to buy from courthouse auctions.

George Roddy, president of Foreclosure Listing Service, said third-party home buyers or investors were able to bid and purchase nearly 175 properties at foreclosed home auction events in 19 counties in May. This represented 6.2 percent of homes that were sold at the auctions.

Typically, mortgage lenders bid on their properties offered at foreclosed home auction events, but investors and other buyers can make efforts to outbid them.

Roddy said that buyers outbidding the lenders are typically investors, but there are a lot of people looking for houses for their families.

This month in Dallas County, 36 units of the over 700 housing units sold at foreclosed home auction events were sold to outside home buyers and investors. In Tarrant County, 29 units of the 521 houses auctioned were sold.

Investors and buyers who buy at foreclosed home auction events need to have ready cash since they must pay up front if they win the bidding.

If the properties are not sold at foreclosed home auction events, mortgage lenders take back the foreclosed properties and then resell them later.

Addison Listing Service studied results of foreclosed home auction activities in the Texas counties of Dallas, Tarrant, Collin, Denton, Rockwall and Ellis this May. Dallas and Tarrant had the highest number of transactions, with 726 Dallas postings processed and 521 Tarrant posting processed.

Dallas also had 36 posting bought by third party home buyers while Tarrant had 29 postings bought by third party home buyers.

Estimates of home prices by different real estate analysts oftentimes differ because they consider changes in home prices differently or they count only particular types of homes in their estimates.

In the last year’s fourth quarter, for instance, the Federal Housing Finance Agency and First American CoreLogic said home prices in North Texas rose. In contrast, the S&P/Case-Shiller Index, the National Association of Realtors and the North Texas Real Estate Information System said home prices in the area declined because of low prices at foreclosed home auction events.

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