Colorado has joined the new age in providing online foreclosure auctions. Last year, Realauction.com was approached by the Denver Public Trustee’s office and asked to provide Denver with its own auction site. That site is up and running and bringing huge cost savings to Denver and making it easier for more people to be able to bid on the foreclosed properties.
Realauction.com runs many foreclosure auctions throughout Florida. One by one, counties in Florida put their foreclosure auctions online, saving thousands of dollars. There are other online auction companies operating in our nation as well, such as hubzu.com and auction.com.
In the past, buyers of foreclosed properties would have to register each week and present a cashier’s check for deposit the day before the auction. The buyer also had to show up in person to do the bidding and could not use their cell phones or talk during the bidding.
With online auctions, the person bidding only has to register once and can bid from anywhere they like. Bidders also don’t know who else is bidding. Under the old system, potential buyers would eye each other and know exactly whom they were bidding against, including huge investment firms who appeared every week and seemed to have ‘an edge’.
There are many pro’s and con’s to bidding and anyone entering this area would be wise to find out as much as they can beforehand. Like other auctions, if a bid comes in within the last 30 seconds, the clock is extended another minute to allow a counter bid. This gives the homeowner more time for an overbid (surplus) to be made on their home.
Denver’s foreclosure sales produced a $4.8 million surplus for borrowers last year. Having online auctions will also allow more out-of-state buyers to bid, increasing the sales and thus the surplus.
When the foreclosure crisis began, Denver’s Public Trustee’s office processed almost 8,500 foreclosures and employed 25 people to handle the foreclosures. With online auctions, the Public Trustee could handle those 8,500 foreclosures with just two employees. Last year, there were more than 9,000 foreclosures filed statewide. Denver processed only 720 during 2016. Foreclosures rose slightly recently but analysts believe the increase is just an anomaly.
The Denver Public Trustee’s office is reaching out to other counties throughout Colorado in an effect to bring them into holding online auctions as well.
If you find yourself in a foreclosure situation and want help in trying to push the auction sale date out, or want to remain in your home and work out an option with your lender, contact an experienced Foreclosure Defense attorney. Gantenbein Law Firm's Denver, Colorado foreclosure defense attorneys are available for a consult of your case. For more information, call 303-618-2122.
Gantenbein Law Firm's attorneys are also experienced in the following areas of law: Real Estate Law, Wills, Trusts, Estate Planning and Probate Law, Business Law, HOA Law and Tax Law. Based in Denver and serving clients throughout all of Colorado, Gantenbein Law Firm's experienced lawyers will give you the best options for your case. For more information, visit www.gantenbeinlaw.com.