Indianapolis Bank Foreclosures to be Auctioned Off

by Peter Vernon on cities

Indianapolis bank foreclosures will be auctioned off at deep discounts at the downtown Mariott Hotel this weekend. The starting bids for the foreclosure homes will range from $500 to $59,000.

A foreclosed house on Brewster Road, which was previously priced at $300,000 will be auctioned off at the starting price of $59,000 while another house previously priced at $400,000 will be auctioned off at the starting price of $500.

Larry Mitchell, president of the Metropolitan Indianapolis Board of Realtors, said it is crucial for the recovery of the Indianapolis housing market to reduce substantially the number of foreclosures.

Mitchell added that he is expecting more first time home buyers to participate in the auction because of the expiration of the $8,000 federal tax credit on November 30. Many are hoping though that the incentive would be extended.

First time home buyers are expected to be the main group that will buy the foreclosure homes in the auction because of the attractive prices, according to Mitchell.

Housing analysts in the area said that the Indianapolis market has been showing some signs of recovery. In August, 24 percent of all homes sold were Indianapolis bank foreclosures, marking a drop from the 30-percent share in March. In August, new listings accounted for 14 percent of all home sales, a drop from the 15-percent share in March.

Pending sales also increased by two percent, the first increase in pending sales experienced by Indianapolis in over 12 months.

Mitchell contended that the decline in the percentage of foreclosures in the market compared to foreclosure levels in 2007 and 2008 is a strong indication of a recovery in Indianapolis. He cited the role of investors and first time home buyers in absorbing the foreclosures.

If the number of foreclosures in the market is reduced substantially, owners of homes who are selling their non-foreclosed properties will have a level playing field.

At the foreclosure auction this weekend, over 70 foreclosed homes will be sold off. At the auction held by the same company in March, 79 foreclosed properties were sold.

Based on a foreclosure survey conducted in 203 major metropolitan areas in the nation, the Indianapolis-Carmel metro area had more than 11,000 foreclosure postings during the first 6 months of this year. This means that one per 68 households in the locale was hit with a default or foreclosure filing.