Home buyers expect bargains at foreclosure auction this weekend

By: Jasmine Huda

KSDK -- The struggling housing market is creating opportunities for home buyers. Across the country, thousands of foreclosed homes will be up for auction this weekend. Dozens of those homes are located in the St. Louis area.

REDC www.ushomeauction.com will hold an auction Saturday morning at the Millenium Hotel in downtown St. Louis. Registration begins at 8 a.m. The auction begins at 9:30 a.m.

The homes range from gut-rehabs to properties once valued in the $400,000 - $500,000 range. The bidding starts as low as $500.

Foreclosure filings on U-S homes jumped six percent from January to February. One estimate puts that at one in every 440 homes.

"The foreclosure market is affecting everybody. We see them out in Chesterfield. We see them out in Frontenac. It's not just city properties that are being foreclosed," John Kelly of Property Solutions Group, LLC said.

Registration is required, Kelly said. He said attendees should bring a $5,000 cashier's check, and be prepared to pay 5% of the awarded bid if they plan to purchase a home.

REDC is hosting auctions in Missouri, Illinois, Kentucky, and Indiana over a five-day period.

While bargain hunters can find great deals, they should also do their homework, Pam Schneider, an agent with Coldwell Banker Gundaker.

"The fact of the matter is the lender is not interested in giving you a deal. They're interested in getting their money out of that piece of property," she said. Schneider said anyone who plans to attend a home foreclosure auction should research the property in advance and contact the real estate agent in charge of the property.

That aside, she said now is the prime time to purchase a home, especially for first-time buyers.

"Your finances are in order. You've got a great credit score. You can go in, capitalize on the low interest rate, get the tax credit, and you're in your first home, at a wonderful time," she said.