Foreclosure auctions bring in $80 million

February 16, 2009 7:30:38 PM PST
In the past week hundreds of foreclosed homes in Northern California have been auctioned off, bringing in more than $79 million.

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Many of the bank-owned homes went for bargain prices, much to the surprise, and in some cases concern, of the people who live next door.

Not long ago one modest two-bedroom home in Oakland's Sobrante Park neighborhood appraised for $225,000. This weekend it sold for a mere $89,000.

We told that to some neighbors who live next door and think their homes are worth a lot more.

"For real? You don't say," said one Doris Jones.

"I'd be slightly surprised," said John Wills

The foreclosed property owned by American Home Mortgage was sold at an auction in San Francisco along with more than 800 other Northern California foreclosed homes.

It is a sign of the times.

The number of foreclosed homes sold in the Bay Area is on the rise. In December half of all existing homes were foreclosures sold by banks at rock-bottom prices

Oakland real estate agent Aziz Khatri says the decreased property values brought on by foreclosed homes have an effect on the entire neighborhood.

"Overall the value of the home is going down, because if you were to sell your house, you are not going to be able to sell for $225K," he said.

But first-time buyers and investors like Al Kashikar are scooping them up. He saw the auction sign and pulled over to inquire but was too late.

"As long as the number makes sense, again, because really the prices were overinflated," he said.

It does not bother Edward Foreman, who has lived in the neighborhood for 53 years and has no plans to move.

"It don't concern me. I'm satisfied where I am," he told ABC7.

But, Doris Jones has had her house on the market for more than a year. She is also facing foreclosure and is asking for $249,000.

She has not had a single offer.

"I'll take what I can get off my house. I want to get out of Sobrante. Period," she said.

$89,000 is an offer she would not refuse.

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