One Man's Foreclosure, Another Man's Steal

(CBS)  In California, it's a new kind of land rush.

One-thousand homes lost in the real-estate wreckage are auctioned off to a crowd of thousands in Los Angeles - up to 40 percent off, CBS News correspondent Ben Tracy reports.

"Sold!" said one auctioneer with a gavel bang. "$170,000, sir, you're the buyer."

In Stockton, Calif., bargain buyers tour foreclosed homes courtesy of the repo-bus.

"Obviously we've got a full house," said one bus driver.

Debra Knowles, a home loan consultant said: "They're reaping the benefit, unfortunately, of someone else's loss."

New numbers out today show California among 10 states hit hardest by foreclosures in 2007. That's 250,000 homes taken by the bank.

Osmar and Norma Canas are newlyweds buying a foreclosed home in Southern California - and they got it for $40,000 off the list price.

"I always believe there is better room to negotiate with the bank than going through a private party," Osmar Canas said.

If you're in danger of losing your home, many banks will negotiate with you as well.

Banks generally don't want another home to sell. But, if you're a buyer, the more foreclosures in a neighborhood, the better the bargains.

"If somebody buys something today, within reason, in 10 years it will look like the smartest financial decision of their life," said broker Geoff McIntosh.

And with the housing market showing no signs of hitting rock bottom just yet, there may be plenty of time to get an entire house at a basement price.

[tomtomasters]

The homes being auctioned are being sold at regular prices to what the values the homes really are anyway. I fail to see how people are getting a bargain. The crooks who created the inflated prices so they could make their profit preyed on poor people to give them homes at zero down, and promises that they would also reap higher values. It is typical lender broker scams, that these guys think they are getting away with cooking housing prices. Banks are not losing anything, they get the real value from the auctions, but they got the sellers who have the money, supporting them now, while they also get real money values to the homes. They loss nothing, its a racket, making dumby Mr and Mrs.Joe&Jane America think they are getting a deal. Far from it, auction of not! Shisters.......they are........

[blimp66]

I''ve been following this story closely for a few years. I used to be an appraiser but got out when it al started to go south. Anyhow., I was inspired to write a song:

http://www.youtube.com/watch?v=Ivp4YqGCI-s

[monkeyman1140]

Houses in my area are still horribly overpriced despite the rapid declines in the market. It seems like the realtors are oblivious of the market or perhaps they know the people buying houses are plain stupid and still will pay a premium over market value.