Bidding For Foreclosed Houses In Ontario

Posted in Foreclosure, March 18th, 2008 |

At Ontario last Sunday auction was on in full swing and Sid Hanna was hoping to pick up a bargain for his son. But the bidding was beyond his pocket. But Wyatt Durstler had another tale to tale. Having successfully bid for a four bed roomed dream in Beaumont he thought the prices were ‘amazing’! Prospective buyers had packed into the ball room of Hotel Doubletree to try their luck with 119 repossessed houses. Some were disappointed while others were euphoric. The auction was being conducted by Kennedy Wilson Auction Group. It was mixed crowd comprising of novices wanting to set up a home for the first time and senior looking for sound investments.
Auction firms are in a frenzy of activity as the number of repossessed house rose by 21 times in Riverside County and by 15 times in San Bernardino compared to 2007. The banks are trying to lighten the load they are weighed down with by taking the help of auction houses.

Experts are warning potential buyers to do their homework before plunging into a bid. Bargains may be made but there also many pitfalls. The condition of the house should be thoroughly checked before taking a decision. It means not just walking through the unit but by flushing the toilet and turning on the switches. The current rates of nearby houses should also be noted down.

Other points relate to auction rules. In a reserve-auction the highest bidder has to reach a minimum level that has been predetermined. If the bid is below that then the bidder has to wait fifteen days to give time to the seller to decide whether he or she will at all proceed with the sale. Another 5% has to be added to the amount to cover fees and expenses.

Hanna felt that many overwhelmed by a emotional tide often bid 20% or 30% more than they should. Nobody is sure about the market. Prices could fall and tumble fast. The successful bidders are taken away to a conference room to sign escrow papers. Dursteler of Temecula is one of them. Recently he got a job and felt confident to pay $287,000, inclusive of the 5% fees, for a four bed roomed house in Beaumont that had been listed for $359,900. He felt lucky and immediately after the signing ceremony rang up his wife. Diana Jones too felt euphoric after successfully bidding $215,000 for a unit listed at $279,900.