Jefferson County Commissioner’s Sale on Liberty Street
I had not been to the Jefferson County Commissioner’s sale in a while and had the opportunity to attend with a friend yesterday. Since Louisville and Jefferson County has merged, this is basically the Louisville Kentucky foreclosure sale. My friend had interest in a neighbor’s property and wanted some real estate expertise as he went to make his purchase. I also went to see if much has changed; it hasn’t.
The December 6th sale had 142 properties on the agenda. 32 of these, or 22%, were withdrawn before the sale. Either restitution had been made, or the lender had some promise of a short sale occurring and postponed the foreclosure auction.
There were 7 properties that actually changed hands. This is only 5% but is on track with all of the other sales that I have attended.
Most of the sales were 2/3 of the Jefferson County Commissioner’s appraisal to avoid the right of redemption act. There were a couple of sales below this number which gives the original owner a chance to repurchase their property.
Of note was a property the commissioner appraised at $17,000. The bidding was fast and furious with the bidding ending at $43,000. The weird part; the bank was the final bidder. Jewell
There was another house that the commissioner appraised at $100,000. The Jefferson County PVA has it valued at $112,900. The bank made an initial bid of $160,125 and this was the only bid. Obviously, there is something that I don’t know.
Back to my friend and his attempt to purchase a foreclosed home. The bidding started at 2/3 and he was the only bidder against the bank. There comes a point when the price becomes uncomfortable. The buyer has to factor in the fact that he has not been in the property and has no control until he has paid for it in full. In short, we walked away empty handed.
It is more of a sure thing to buy a bank-owned foreclosure once it is on the MLS. You have the ability to at least see the interior of the home and will more than likely do a home inspection.