Lisa Simpson
May 17,2010
In: foreclosure auctions

Foreclosure Auctions are Attracting Sharks from other Places

Foreclosure auctions in Kansas City.

Foreclosure auctions are attracting sharks from other places and this has made Mayor Mark Funkhouser apprehensive. In the next auction 200 foreclosed houses would go up for sale. The out of town investors as well as the bankers are keen to flip properties without even seeing these or making any repairs and improvements. The mayor feels that this is not good news for Kansas City.

Those living adjacent to foreclosed vacant houses have nightmarish experiences. One of them is Mildred Angel. She is a resident on Palmer Avenue. She said that from her neighbouring vacant house as all sorts of thing creep out including snakes. Another unit across the road is being developed by non-profit organization.

Mark Stallsworth of Neighborhood Housing Services said that they repair and give a new look to the houses but the out of town flippers roll in and take advantage. They buy groups of houses in the city areas and do not bother to maintain these. They allow the properties to rot waiting for the health of the market to return.

Stallswowrth said that his group buy houses and attend to the repairs before going on to another one close by. But then after all this work outside investors roll in and buy these up allowing the grass to grow. After about a couple of months the price increases and they sell off the units pocketing tidy profits. If this trend continues another crisis will take off.

At a press conference held in the afternoon in front of one of the rehabilitated houses the mayor threw a challenge and said, “We would like some local investors to participate in this auction and buy some of these properties.”

One does not have to look far to find out the reason for this. The local buyers invariably do the investing within the community. The mayor reiterated that what is required is that people residing in the houses trim the gardens, shovel the sidewalks and participate in community works. This is not possible if the units lie vacant. The mayor added, “There are thousands and thousands of vacant homes in Kansas City.”

The auctions take place every Friday and Saturday afternoons at Holiday Inn Coco Key that is close to Truman Sports Complex. The purchasers will be expected to make deposits in cash or through certified cheque deposits amounting to $1,000 for each of the units.