Foreclosures auctions are one of the best places to find Denver homes at rock bottom prices. In fact, accordingly to RealtyTrac, there are 1,372 trustee sale foreclosure auctions in the Denver area. Properties are frequently offered in online auctions as well. To find out about online foreclosure auctions, you should check various sites on the Internet and the local newspaper. Online auction notices may also be posted at the property address or at the local county courthouse.
Benefits of Online Auctions Online auctions offer bidders many benefits including the following:
- Pre-registration
- Bidding from the comforts of your home or office
- Bidding is less intimidating for new investors or first time home buyers because you do not have face to face contact with other bidders, although bidding goes quickly
Denver Foreclosure Auctions Onsite public foreclosure auctions are held every Thursday at 10 a.m. at the Clerk and Recorder’s office located at 201 West Colfax Avenue, #101. Bidders must register with the Public Trustee. A list of properties can be found online at the Clerk and Recorder’s Office. The bidders must get their registration form stamped y the Public Trustee no later than 9:30 a.m. of the morning prior to the auction. Funds must be either wire transferred, certified check or cashier’s check in the amount of $1.00 greater than the lender who is foreclosing on the property’s bid, which is published in the website on Tuesday afternoons prior to the auction. The winning bidder receives a certificate of purchase which is considered a lien against the property. The certificate of purchase can be used to obtain the deed after the expiration of the statutory redemption periods. The new owner is liable for all liens that are more senior than the lender’s lien.
Bank Owned Properties There are also 532 bank owned REO properties also available. REO’s are properties that the banks bought back that didn’t sell at foreclosure auctions in the Denver area. Like auction properties, REO’s are also offered at discounted prices below market value. However, REO’s have less risk for the following reasons:
- All liens have been paid off by the bank
- You can purchase title insurance
- Homes can be inspected
- You may obtain financing
- The property can be inspected
- The bank may also agree to pay the buyer’s closing costs up to6% of the purchase price
Denver Home Market RealtyTrac reported the median sales price of a Denver non-foreclosure resale home at $240,000 during the period June 12, 2012 through August 12, 2012. The average list price for a Denver home was $434,955 during the week ending September 5, 2012, which was a 1.8% increase or $7,679 from the prior week. According to RealtyTrac, 1 in every 617 homes received some type of foreclosure notice in August 2012. The average sales price for a foreclosure home is $189.623. Cities that had the highest price gains in sales were Snowmass Village, with an average sales price of $779,128, up 60.75%, Silt, with an average sales price of $219,257, up 21.85%, Brush, with an average sales price of $107, 286 up 19.11%, Johnstown with an average sales price of $240,479, up 19.11%, Basalt, with an average sales price of $441,024, up 17.70%, Sterling, with an average sales price of $125,798, up 16.72%, Fort Lupton, with an average sales price of $151,801, up 15.505, Englewood, with an average sales price of $308,701, up 15.42%, Nederland, with an average sales price of $350,137, up 11.06%, and Woodland Park, with an average sales price of $269,693, up 10.90%.
Advantages of Purchasing Foreclosure Properties For many first time home buyers, purchasing a foreclosure home is one of the best ways to take advantage of the affordability factor that the marketplace has to offer right now. First time home buyers are also competing with investors who looking for bargains on REO’s and short sale properties. Local Denver Realtors have reported an increase in demand for short sales with quicker closing times. Since investors generally are cash buyers, they tend to purchase repossessed homes more often at foreclosure auctions, either online or on site auctions than first time home buyers. Although many first time home buyers have been making bids on houses through both online auctions and some are attending onsite auctions. The popularity of purchasing foreclosure properties is driving buyers to the Denver marketplace because buyers/investors know they are getting a home with built in equity in a Denver neighborhood they may not otherwise be able to afford. While no one knows how long these great bargains will last, now is still a great time to take advantage and find your foreclosure bargain auction bargain, REO or short sale.
