what's the deal with these real estate auctions in this city? (tax lien, bank owned)

[thealfa]

I keep seeing posted signs from ashland auction/inner harbor realty (which probably are the same companies) about auctioning off properties. How did they get a hold of so much properties to be auctioned off? The people running these auction houses all have names of a ponzi schemers (shpritz, etc.). Anyone ever dealt with these company and people before? The houses they auction off all have higher prices than it's actually worth paying for. I called them up and spoke to someone there, sounded like a salesperson. Anyone selling anything is a salesperson so good for them. Some of the properties they tried to auction off but didn't looked abandoned as I see their posted ad in front of the property with an out dated auction date as if to say "well it didn't sell so time to leave it and go to the next one". Maybe this is standard practice with auctioneers? Maybe I'm making too much assumption?

[Butler Waller Team]

In our professional opinion, Auctioneers are removing foreclosure and short sale inventory off of the resale market as it relates to an agent providing a more accurate Comparable Market Analysis. Due to the large number of bank owned properties throughout the region, auctions are providing a medium to move these properties without interference of existing resale property values as they re-enter the market for sale. Ex: When a home is going to be listed, the first thing any agent performs is a comparison analysis of like properties in a given radius nearest to the subject property that is currently listed and recently sold. The projected target range for value is generally 3 active properties listed and 3 sold properties similar to the subject property. The Multiple Listing Service has a category for Auction properties that agents do not generally include in a resale comparison analysis. This methodology is helping to improve true value of neighborhoods where the market comparison was impacted by foreclosures and short sales listed in the active category.

Hope this helps...

[remstone]

Tax sales.

These guys have some connect with the lawyers/financiers who have bought up some of the yearly tax liens. They've got a pretty extensive list of properties that are "kinda" available if you're willing to pay an inflated price. Best I can tell is that these are situations where the lien bidder has maybe overbid, but doesn't know what the real market for a property is. If you say you want it at their price then they go ahead and complete the tax lien foreclosure and can make a dime. Otherwise it sits in limbo. If the lien buyer had actually gotten a good price then they would have just finished the foreclosure themselves already.

[thealfa]

interesting talk despite me not understanding "real estate speak". LOL. There is a rowhouse in pigtown for sale. It is boarded up now but before I saw it occupied. I wonder what happened to the owners. The records that I saw online was that it was sold last year for around $20K. Now it is being sold AGAIN for around $20K.

The taxes paid last year was about $2K. Are rowhouses in baltimore city bought for $20K usually carry an annual property tax of about 10%? $2k is 10% of $20K, right? Still wonder what happened to the former owners. Was the house foreclosed? It couldn't have been considering the house is still being sold at about the same price as last time it was sold. Also, not sure any bank would give out a loan for a $20K property therefore the house must have been paid in cash, if so then why is it boarded up now? Did they not pay property taxes that is $2K? There were people living in there just a few months ago as I mentioned.

I'm not sure what you mean by buying tax liens. Are these realtors/auctioneers simply buying the liens or title but not the house? Is the lien or title acquirement another way of getting a hold of the property then?

Originally Posted by remstone

Tax sales.

These guys have some connect with the lawyers/financiers who have bought up some of the yearly tax liens. They've got a pretty extensive list of properties that are "kinda" available if you're willing to pay an inflated price. Best I can tell is that these are situations where the lien bidder has maybe overbid, but doesn't know what the real market for a property is. If you say you want it at their price then they go ahead and complete the tax lien foreclosure and can make a dime. Otherwise it sits in limbo. If the lien buyer had actually gotten a good price then they would have just finished the foreclosure themselves already.