Today I went to the McCracken County Master Commissioner's Sale. It was held at 1:30pm inside the courthouse at the steps going upstairs. This was my first time attending one of these so when I had always heard someone saying "courthouse steps" I always thought they meant outside. Turns out it's inside.
Up for auction today were 11 properties. Four properties were removed from the list as a sale or something had enabled their removal from the list. Properties ranged from around $23,000 to $229,000. There were probably 30 to 40 people there. I noticed a couple of other agents there. I assume with clients. There were at least a couple of attorneys there representing lenders.
I had many reasons for attending. I wanted to learn if it was really possible to get a great deal at one of these auctions. I wanted to experience one for myself as hearing it from someone else doesn't include all the details. Details are good. :-)
I don't totally understand all the possible circumstances a property would be auctioned off. I assume foreclosure but I wonder if bankruptcy could be related to some homes getting on this list.
Of all the properties auctioned off today, all properties except one were purchased by the lender that took action. These are the ones I assume were foreclosures. The one property not involving a lender was between two private individuals. The newspaper said it had something to do with a suit involving the division of property and to recover the costs of the sale. The commissioner stated the appraised value was $40,000. A bidder started the auction at $5,000. This property ended up selling for $19,600. Several bidders got involved. This property did not include a right of redemption.
One question I have is regarding the properties the lenders purchased. I assume these properties were foreclosures and that the proceeds of these properties go to the lender minus any legal fees. The lenders then sell the properties to recover their costs? These properties will likely be available or being sold by another agent in the near future?