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Foreclosure Listings Auctions, Not a Bargain Anymore

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By : John Cutts    99 or more times read
It used to be that homebuyers looking for bargains flocked to foreclosure listings auctions because they know that they could find good property deals. But Florida homebuyers are discovering that this is not the case anymore. Good deals no longer abound in foreclosure listings auctions.

This is because banks include in the bid amount the mortgage owed to them, attorney’s fees and whatever expenses incurred during the foreclosure process.

And most of the time, the bid amount is higher than the market value of the house itself, taking into consideration the rapid decline of property prices.

According to First American CoreLogic, a real estate data firm, home prices in Gainesville, Florida declined by 7.5 percent from December 2007 to 2008. During the period, about 18 percent of distressed homeowners in the area owed mortgages more than the total fair market value of their properties.

Also, 6 percent of distressed homeowners were nearly 5 percent of owning more than the real worth of their distressed properties.

Florida is one of the top 10 states with a growing foreclosure listings. It is predicted that the number of homes in the state’s foreclosure listings could increase by 100 percent for this year.

Meanwhile, some foreclosure listings auctions in Florida were canceled because troubled homeowners declared bankruptcy, were able to negotiate an affordable payment plan, refinance, were able to update their payments or sold the home in short sale.

Homeowners who go through foreclosures went to a courthouse auction. If nobody bids for the foreclosed property, the bank will offer a token bid of $100.

Homes that were not sold during auctions will be added to a growing foreclosure listings of unsold homes and may further drag down home market values.

Foreclosed properties that remained abandoned and vacant for a long time also contribute to the deterioration of neighborhoods.

Currently, there are 57 bank owned foreclosure listings and short sales in Alachua County. These figures represented 3.7 percent of the total 1,551 residential houses for sale.

In 2008, about 27 bank owned properties and short sale were put on the market. For this year, 30 new foreclosure listings were added in Florida.

Foreclosure filings in Gainesville area increased by 50 percent from January of last year to the same month this year.

Foreclosures continue to spread in populated neighborhoods of Gainesville, particularly in southeastern and northeastern.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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