Rising Bell County foreclosures attracts larger auction crowd

Texas Foreclosure & Real Estate News

by Fred Afflerbach Telegram Staff Writer

BELTON - After a 29-day stay in the Temple VA Medical Center in which doctors embedded a pacemaker in his chest, Desert Storm veteran Thomas Barnes returned to his Killeen home to face another battle - pending home foreclosure.

Sick pay from his job at Fort Hood was exhausted, and he had fallen six months behind in his $1,000 a month mortgage payment. Concerned for his health, his wife had avoided telling him the bad news.

Barnes’ home was one of 198 properties that were posted for foreclosure this month at the Bell County Courthouse Annex, 62 more than January.

The recent surge in foreclosures apparently drew a larger than normal crowd at the monthly auction. By late morning, about 30 people gathered in front of the Bell County Courthouse Annex on East 2nd Street. Some had settled into folding chairs, clipboards in hand. Others leafed through a handbook that lists the amount owed, assessed value and address of the properties posted for foreclosure.

Foreclosure Listing Service Inc. president George Roddy Sr. said two factors were responsible for the recent surge.

“Approximately 10 to 15 percent of the postings that were filed in February would have been filed for the January auction had it not occurred on New Year’s Day,” Roddy said.

But that alone does not account for the entire gain.

“I believe some of the lenders simply made the tough decision to say it’s time to get these delinquent loans off the books,” Roddy said.

Bonnie Brown with Foreclosure Listing Service Inc. said most homes set for auction are simply bought back by the lender.

“The lender has to be the highest bidder. The auction is the legal instrument of getting back their property,” Brown said.

After lenders buy back the property, they typically make some repairs, make sure the former occupant has moved out, and then place the house for sale with a real estate company.

Brown said about 5 percent of the total homes posted for foreclosure is actually sold to investors.

One such investor at Tuesday’s auction was Gary Kafer, a retired schoolteacher from Gatesville. He bought a house for about $53,000.

“Sometimes you can get a good deal on them, sometimes you can’t,” Kafer said. “I’ve been coming the last three months, and I haven’t found anything I thought would be profitable, but this one came up today.”

Kafer said he plans to fix up and sell the home for profit and fun, but he’s not getting rich. “It pays the bills.”

Jim Wright, a commercial real estate broker, said he bought a duplex in Killeen.

Expecting a long wait, Temple attorney Ed Laughlin unfolded a lawn chair and newspaper in front of the annex.

“I’ve been doing bankruptcy law for 26 years, and I’ve been following foreclosures closely for nearly 20 years here in Bell County,” Laughlin said. “This is the most we’ve ever had on a single day in 20 years at least.”

Laughlin said he was representing a client who had filed bankruptcy just this morning, and was ensuring the house was not auctioned. He said bankruptcy is an option for those behind in their mortgage, and in jeopardy of losing their house.

“It’s not a free ride. You have to pay every dime, plus legal fees and interest,” Laughlin said.

 

Article Source http://www.temple-telegram.com/story/local/2008/02/06/46916