$10 Million Sales in New York Foreclosed Home Auction

With nearly 1,300 bargain hunters, the foreclosed home auction held by Real Estate Disposition Corp. at the ballroom of the Grand Hyatt New York in midtown Manhattan last Sunday resulted in $10 million of total homes sale.

A total of 113 foreclosure houses in and around New York City were sold, easily snapped up by buyers because of their attractive prices.

REDC was pleased by the sales results, although the foreclosure home held last March at the Jacob Javits Convention Center resulted in a higher sales amount. In March, a total of 207 homes were sold, resulting in $18.6 million of total sales.

Jeffrey Frieden, CEO of REDC, said the lower number of properties auctioned this June was due to the foreclosure moratorium imposed by the Obama administration. He insisted that what the foreclosure moratorium did was just to delay the foreclosure process for a couple of months and not really to prevent the process.

Frieden said that many of the houses covered by the moratorium still went on to the June foreclosed home auction and that more would be processed to be included in the next auction which will be held in August or in September.

Last month, foreclosures across the city increased by 8 percent from April. According to data from PropertyShark.com, Queens accounted for 73 percent of all foreclosures in New York boroughs. Statewide, a total of 285 homes entered foreclosure inventories last month.

Frieden reiterated that he is pleased with the June auction results and with what buyers acquired. He said that all of them snapped up unbelievable bargains.

Among the biggest deals in the June foreclosed home auction was a home in Staten Island which sold for only $63,000, a 90-percent discount from the home’s highest price level of $595,000. Another was a Newark home that sold for $12,000, a 95-percent discount from its highest price level of $280,000.

In the last 18 months, auction company REDC has already sold over $5 billion in foreclosed properties. Its web site was formerly called USAHomeAuction, which changed to Auction.com after paying $1.7 million to buy the domain name earlier this year.

At the March foreclosed home auction which was attended by around 2,000 people, many buyers were able to acquire homes for as low as 50 to 60 percent of their appraised value.

All in all, REDC CEO Frieden said every foreclosed home auction results in families occupying vacant houses, paying property taxes and bills and helping move the economy forward.

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