Investors who bought houses at first-quarter foreclosure auctions in Dallas-Fort Worth paid about 56 percent of the tax appraisal value, a new report finds.
"Investors buying at these auctions got a great bang for the buck," said George Roddy Sr., president of Addison-based Foreclosure Listing Service. "This is the most remarkable period for buying at the foreclosure auctions that I have ever seen."
In Tarrant County, third-party investors paid 57 cents for every dollar of assessed value.
For the year's first three auctions, 4,205 houses in Tarrant County were posted for foreclosure, but only 1,478, or 35 percent, were actually auctioned, Roddy figures show. Of those sold, 76, or 5 percent, were purchased by a third party, the report said.
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In Denton County, 38 percent of the houses posted for foreclosure actually auctioned, followed by Dallas County at 34 percent and Collin County at 32 percent. For all four counties combined, 35 percent of the 13,259 houses were auctioned, Roddy said.
Some of the third-party investors are people looking for a good deal on a home to live in, Roddy said.
"Despite the downturn in the economy, there are many households out there that have stashed some money away or have good credit," Roddy said. "For these families, it is an ideal time to be shopping for a home to live in or for an investment piece of real estate."
In cases where the property is not auctioned, the owner may have become current on mortgage payments, renegotiated the loan, filed for bankruptcy or sold the property.
SANDRA BAKER, 817-390-7727