Foreclosed homes go on the auction block in Stockton

Bidder’s market: Foreclosed homes go on the auction block in Stockton

STOCKTON – Hundreds of bargain hunters filtered into the Stockton Civic Memorial Auditorium on Sunday morning, hoping to scoop up a foreclosed home for thousands below market value.

The crowd was a mix of investors, realtors and couples hoping to score a nice price on a home for themselves.

All had their eyes fixed on 208 San Joaquin County houses up for auction with beginning bids starting as low as $1,000.

“It’s a chance to get into the market,” said Angela Alvarez of Stockton. “There’s one I like. I’ll see how the bidding goes.”

Bidding was fast and furious, with homes that once sold at inflated prices during the region’s housing boom but fell into foreclosure during past year’s subprime lending meltdown.

On Sunday, a four-bedroom Organic Way home in Tracy that once sold for $640,000 went up at a starting bid of $99,000. Auctioneer Jeff Frieden blazed through bids in $10,000 increments, and in a few seconds, the high bid stood at $250,000. “Do I hear $260,000? Come on folks, I assure you, you’re not overpaying,” he said. His reassurance satisfied one bidder who won the opportunity to buy the home for $260,000.

Winning bidders at the auction were required to pay a 5 percent fee to the host Real Estate Disposition Corporation. A spokeswoman said the company was hosting six different auctions in California on Sunday, the biggest day in the company’s history and its fourth tour in Stockton this year.

A winning bid doesn’t guarantee a sale, however.

Investor Albert Saballa, 63, has been to three of the four REDC auctions in Stockton this year. The first two auction he bid on and won the chance to buy the same Stockton house.

“I won the bid at $130,000 the first time, but couldn’t get it financed,” Saballa said. “The second time, I won at $115,000 and had a cash offer. The bank rejected my offer.”

Javid Iqbal of Stockton hopes his negotiations with bank representatives will go more smoothly. With $75,000, he was the winning bidder of a south Stockton home previously priced at $300,000.

“I’m happy to win,” Iqbal said before he met with bank representatives and lenders. “It’s an average house, but a good price.”

Realtor Mark Stebbins said auctions such as Sundays can be risky for buyers. Many people place bids on the homes seeing only a photo, and he reminds that the bank can reject offers.

“The key for people is to be persistent and patient,” Stebbins said. “Do your research. There are a lot of good deals out there.”

Stebbins advice might be fitting for Alvarez. She said the bidding on the home she hoped to win soared out of her price range.

“I wasn’t going higher than $150,000 and it sold at over $200,000,” she said leaving the auditorium. “The bids get high real fast.”