Home Auction Frames Rising Foreclosures

A record one in ten people are now either behind in their mortgage payments or in foreclosure. But the slumping housing market combined with the struggling economy has created a kind of perfect storm of opportunity for home buyers. And there was a roomful of potential buyers this morning at a foreclosure auction in eagle point.

They came from as far away as Roseburg. Some eager for deals, others just curious.

"We're here just to see how low the market is," says Woodra Roberts of Eagle Point. "I can't see losing money in real estate unless you way over bid."

Three homes were auctioned off, including a four bedroom, 1 1/2 bathroom house on .21 acres. Previously valued at $185,000, Friday's starting bid was a steal at $9,000.

"That's just the teaser and we were kind of expecting that. That's to get you to the auction," says Mary Barron, who drove down with her husband from Roseburg.

And that price didn't last long. With in seconds it went from $25,000 on to $50,000.

Some people here were looking for a home to move their family into. Others see this as an investment like the Roberts who own rental properties.

"From what i understand it's a good time to be buying real estate. Don't ask me to invest in the stock market because that's not good right now," says Jim Roberts.

It's falling home prices and low interest rates that make this a good time to buy, at least for some. They say the key is having the money and time to wait for your investment to grow.

Even with a roomful of bidders to drive up the price those bidding Friday say there are bargains to be had but you can't get caught up in the excitement of the auction.

"Know your maximum. Set the line and stick with it.  So my husband and i determined beforehand what that would be and you know, at least we got to raise our hands a couple times. That was fun," says Barron.

Beyond knowing your own limits you have to realize the bank has their limits as well. If the high bid doesn't reach the bank's undisclosed minimum the sale doesn't go through. That was the case with the Eagle Point home. The high bid of $50,000 didn't reach the bank's minimum. After some private negotiations the house was sold, but neither buyer nor seller would reveal how much it cost.