Banks, auctioneers, communities gain
At this particular auction, the properties varied from condos to single family homes to multiple dwelling buildings with commercial units on the first floor. They were located in the suburbs of Philadelphia, towns with poor populations in New Jersey, working class neighborhoods in New York and low income communities on Long Island. Buyers paid a small registration fee to enter the auction and receive a number that entitled them to bid. The auctioneer, Auction.com received a fee of 5% of the selling price on each winning bid. Buyers had to present a cashier's check for $2,500 upon winning a property and they also had to show a pre-approved letter from a mortgage lender. Mortgage brokers were available on site to help them get financing if need be.
Business is good for Auction.com right now. Vice President Trent Ferris called the foreclosures sad and tragic, but he said, "At this point in time, nothing good comes from the empty house sitting there." He said it's better to sell the homes at auction and generate revenue in those communities.
Business is good for Auction.com right now. Vice President Trent Ferris called the foreclosures sad and tragic, but he said, "At this point in time, nothing good comes from the empty house sitting there." He said it's better to sell the homes at auction and generate revenue in those communities.
NEXT: Many more foreclosure auctions to come
Last updated February 09 2011: 9:51 AM ET
