Bank Owned Property Auctions in Las Vegas in December 2007

Yes, even the banks are sending their properties to auction. There are some good things and some bad things about these auctions. Here are some of my limited experience with these auctions and some figures from the last auction!!

First, these properties have completed the foreclosure process and are now owned by the lenders. They are REO's (real estate owned = REO) that the banks do not want to hold. They are advertised as "foreclosure auctions" when in reality, the "foreclosure auction" has already happened. A better way to say it is "post-foreclosure".

There are two auctions coming up soon in Las Vegas. One being www.USHomeAuction.com by Real Estate Disposition Corporation. This will be a two day event on December 8th (Southern Las Vegas) and December 9th (Northern Las Vegas). There will be over 300 homes on this auction block. There is a 5% buyer's premium in addition to the final bid and a 5% deposit will need to be made immediately. There are other terms that you must become familiar with - please see their website. This auction will be conducted at the Plaza Hotel and Casino in Downtown Las Vegas with registration beginning at 8am and the auction starting at 9:30am.

The other auction is the Hudson and Marshall auction on December 2nd. www.HudsonandMarshall.com . There will be over 230 properties on this auction block. There is a 5% buyer's premium in addition to the final bid and a 5% deposit will need to be made immediately. There are other terms that you must become familiar with - please see their website. This auction will be conducted at the Ritz Carlton at Lake Las Vegas at noon - go early to register.

Ok - now the pros: 1. You can preview these properties - go look inside and out. 2. You can use lender financing for the purchase - call your loan officer or use the preferred lenders listed on the websites to get prequalified. 3. Brokers will be compensated - just be sure to follow their rules.

The cons: 1. The final bid can be "approved or disapproved" by the seller. That deal you thought you got on the auction floor may not be "for real". 2. No contingencies - other that what is provided for by State Law (HOA disclosures and approvals, Seller Real Property Disclosure, etc...) no appraisal contingencies, no financing contingencies, no inspection contingencies, ..... 3. You can lose your 5% deposit if you do not complete the purchase.

Hudson and Marshall held one of these auctions here in Las Vegas on August 5, 2007 at the JW Marriot resort. At that auction, 88 properties were scheduled to be called, 83 were actually called. Total bids with the 5% buyer's premium were $21,781,200.

The important numbers are what actually closed!!! 46 of the 83 did not close from this auction - 37 did. Of the 46 that did not close - 23 of them are relisted on the December 2, 2007 auction, 14 of them are on our local MLS for sale and 9 of them sold off our local MLS after the auction. Of the 37 closed from the auction (a total of $9,704,825), 7 of them are relisted for sale on our MLS and 4 of them are listed as rentals on our MLS. (These figures are effective as of 11/6/07).

I find these figures interesting - I hope you do too!