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Grandma’s fine china or the 4-H kid’s prized hog can change hands in an eyeblink. That’s how quickly the houses went at a foreclosure sale the other night at Bartle Hall.
Nearly 60 sold in two hours. Empty houses whose former occupants moved out after receiving an eviction notice — or the threat of one — when they couldn’t keep up with the mortgages.
Many went for half their estimated value or less.
“Opportunities are here!” Trent Ferris, an executive of the Real Estate Disposition Corp., called out from the stage. “It’s a perfect storm of opportunity!”
That storm: low prices, low interest rates and motivated sellers, as in the lenders that want to unload all the houses they’re stuck with. But mostly because the economy stinks and millions are out of work.
The bright spot in all this: Some people who couldn’t afford to own a home before now can.
People like Teresa Thomas and her boyfriend, Mike West, who were the successful bidders on property No. 1303, a three-bedroom, 1½-bath ranch in south Kansas City that was last listed at $59,000.
They picked it up for just 35K.
“It was my second choice,” said Thomas, who lives in Belton. “I had seven on my list.”
Others were looking for investments.
Scott Brown of Leawood paid $19,000 for a house in Kansas City that he planned on making a rental.
Keith McLain of Blue Springs said he had his eye on one in Raytown that he had hoped his son could share with college roommates.
“It went too high,” he said as he strolled out of the hall early with the earnest money still in his pocket.
More than a couple of hundred potential homebuyers were there, I’d guess. Some told me they weren’t bidding, just checking it out for next time.
Plenty of others came with the $5,000 cashier’s checks that gave them the right to make bids.
It had the feel of a cattle sale in Hale Arena. Up on the screen would flash the photo of a house. Then the auctioneer would start babbling. Up would go hands in the audience.
“Yep!” one of the auctioneer’s three tuxedoed helpers would holler from the floor when a yellow bid card flashed.
“Haw!” another would bellow, jerking his arm back and crouching like an umpire calling a runner out at home.
All that noise and commotion was giving me a headache.
So I moseyed over to where the money changed hands, all the while wondering whether someone in the audience was there with a keener curiosity than most.
Perhaps to see how much the place they once called home would go for at a distress sale.
“It’s a very emotional thing,” said auction helper Jill Burke, who has worked dozens of these across the country.
“People cry who lost their homes, and others cry for joy. I had one lady, you would have thought someone had died.
“She just cried and cried and cried because she bought her dream home.”
Real Estate Disposition Corp. isn’t the only outfit holding these foreclosure sales. Even so, REDC said it sold 32,800 foreclosed homes at 300 auctions, amounting to $3.4 billion in real estate in 2008 alone.
That’s a whole lot of joy and a whole lot of heartache for one year, and 2009 looks to tug at the emotions even more.
The first quarter is not quite over, yet the company has already auctioned off 6,000 foreclosed homes nationwide for more than $600 million.
That’s what the guy meant when he said “it’s a perfect storm” for homebuyers.
As someone who knows folks who are in danger of losing their homes — and who doesn’t — that phrase always reminds me of the George Clooney movie about the shipwreck.
No, losing your home isn’t the same as drowning at sea. However, I imagine it feels like it.
To reach Mike Hendricks, call 816-234-7708 or send e-mail to mhendricks@kcstar.com.
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