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CHARLOTTE -- Despite more new homes being built in June, foreclosure rates are shattering records across the country.
According to the National Association of Realtors, about one third of U.S. home sales are a result of foreclosures and other distressed deals.
That means there are lots of bank owned properties up for grabs and Charlotte investors got a chance to bid for some of those Saturday at the Real-Estate Disposition Corporation’s (REDC) Foreclosed home auction.
Inside the Marriott in Center City the auction is a face paced environment.
"The most important thing is knowing what you’re doing and having a plan," explains bidder Kathy Bernath.
But even if a well prepared buyer can understand the hand signals it’s easy to get caught up in the action.
Bernath explains what was going through her head when she placed the winning bid for a piece of property. "I went oh God, my husband’s going to kill me I went over."
For her, today is not about buying a new home.
"The lot next door to us has been open for 5 years."
The bank foreclosed on her neighbor’s property before anything was built there. "We thought we’d try to pick it up and make the size of our lot bigger."
She made the winning bid, but the bank has to approve the price before she can actually buy the land.
"You gotta wait, they say 15 days to find out,” she explains.
REDC President, Jim Corum says, "It’s really kind of a buyer’s market."
He says his 8 auctions in 7 cities across the Southeast are attracting lots of buyers for thousands of homes. Some of the starting bids are just $500, while others will sell for about a half million dollars. He claims there is no shortage of interested bidders.
"People who were priced out the market back when the boom was on, they’re jumping back in now.” He adds that, “Between auction pricing, motivated sellers, and good financing there’s some great opportunities for people that are in the market."
The one thing Bernath cautions perspective buyers is, “It’s not just about knowing the condition of the house but also what happens afterwards.” Corum agrees, “Do your homework so when you come here you’re prepared.”
The REDC continues their tour of the Southeast in Raleigh on Sunday and finishes next weekend in Atlanta.
