Eager home buyers may see the economic recession’s silver
lining on Saturday when more than 300 foreclosed Minnesota properties are
auctioned off by Real Estate Disposition Corporation (REDC).
The
homes are sold in “as-is” condition—and they typically go for about half of
their estimated previous value. Potential buyers had the opportunity earlier
this month to inspect the houses up for auction.
Such auctions are
happening around the country as homes are repossessed by banks. Several
foreclosed home auctions have already taken place within Minnesota.
Most
homes at Saturday’s auction have starting bids of a few thousand dollars—but
some are as low as $500. The highest starting bid is $299,000 for a
5,656-square-foot mansion in Cedar that’s valued at $1.3
million.
Homes being auctioned are located all around the state.
Most are within the nine-county metro area, but some are as far away as the
popular Brainerd lakes area north of the Twin Cities.
The auction
will take place at the Minneapolis Convention Center. Registration begins
promptly at 8 a.m., and the auction begins at 9:30 a.m. To get into the auction,
a consumer must bring a $5,000 cashier’s check made out to himself or herself.
Winning bidders must put down cash deposits equal to 5 percent of the purchase
price.
Irvine, California-based REDC has sold more than $5 billion
of real estate assets since it was founded in 1990. In 2008, the company
conducted 300 auctions and auctioned 32,800 homes that were sold for a combined
$3.4 billion.

