Take a peek at the recent New York foreclosure auction.
This week, there’s plenty of commotion in the New York area but no, it isn’t because of fashion week or the Westminster dog show. The auction company Real Estate Disposition Corporation managed to gather hundreds of bidders to avail of bargain homes that have been foreclosed. But it seems there’s another outrage outside the auction house.
The company has been obviously taking advantage of the crisis. In their press releases, we’ve found out that in October last year, they’ve sold 1,214 foreclosed homes in Florida and Northern California with a combined value of $165 million. In the following months, this was followed by successful sales in Chicago and Las Vegas worth $57 million for 600 homes, in Kansas City with 95 houses and Denver with more than 80 properties. Bidders are requested to register online first, pay a visit to their desired properties from the company’s online listing, issue a $5,000 check as an earnest money deposit (usually done to make sure that they are serious bidders), and bid on the property that they choose once the auction begins.
On the other hand, there’s nothing enormous that the BailOut the People movement can do to halt foreclosures other than hold protests as seen on the video. In fact, there’s another demonstration slated on April 3 and 4 in Wall Street. In our opinion, they hold a strong point against bailed out banks that do not take measures of holding on houses on the brink of foreclosure. In their working paper, the organization states, “Considering the unprecedented intervention that the government has made to rescue the financial system that created the housing crisis, it is incomprehensible that a simple moratorium on foreclosures and evictions has yet to be enacted. All of these measures have two things in common; one, they all involve persuading bankers to find some ways to slow down the evictions instead of forcing them to stop evictions and two, none of these measures has put a dent in the head-spinning rate of foreclosures. The Moratorium Now! Campaign is fighting to force the government at every level to declare a moratorium on foreclosures and evictions.”
But who’s listening? We highly doubt it would be Tim Geithner. There’s more bank bail out needed if you ask him. But we’re still waiting for the details though.