As Foreclosure Rates Increase, So Does Number of Homes Sold Through Auction

. July 17, 2007

Williams & Williams, the world’s leading real estate auction firm, celebrates recent record months of stellar sales. As the rates of foreclosure have continued to escalate across the nation, more and more borrowers have turned to real estate auction as a viable means of bringing liquidity to their assets in a transparent and efficient manner. Williams & Williams now sells more foreclosed properties every month than any other brokerage in the world.

Noted in a June 15th article of American Banker, the Mortgage Bankers Association stated loan foreclosures hit a record high in the first quarter of 2007, and the numbers continue to skyrocket. MBA’s chief economist and senior vice president of research and business development, Doug Duncan, said, “We’ll see a peak of delinquency rates this year, but not see a peak in foreclosure until 2008.” Williams & Williams’ partner, RealtyTrac, which publishes the largest national database of foreclosure and bank-owned properties, provided some very alarming data for select markets around the nation. Out of 24 major markets surveyed, 20 of them showed increases in the number of foreclosures from the first quarter of 2006 to the same period of 2007.

“Our numbers speak for themselves,” said Dean Williams, president and CEO of Williams & Williams. “Real estate auction works. What we are seeing on front lawns across America is the emergence of a two-tiered real estate system. While there should be no doubt that many Americans have the luxury of using the traditional approach to speculate with an approximated price, so too should it be recognized that many other Americans do not. For any number of reasons, they want to know the market value of their property as quickly and transparently as possible. So they’re using the same approach a trader uses on the stock exchange or a Rockefeller uses to sell a painting – they go to auction.”

Selling a home by way of a real estate auction brings fair market value to the property, rather than the guessing game often associated with the traditional list and wait method. Buyers can gather to determine the home’s real market worth in one swift session, which saves tremendous amounts of time and money. Borrowers utilizing the auction method can avoid loss of equity and credit worthiness, while lenders can avoid financial loss and keep foreclosed properties off their books.

“The auction is starting to shake the very foundation of the real estate game,” added Williams. “Speculative sellers and agents are found wanting while buyers at hundreds of local auctions conducted by Williams & Williams snap up homes in mere seconds.”

“I’d never sold or bought a home at an auction before, so naturally I was skeptical,” said Joe Wallman who sold his home through a Williams & Williams auction outside Richmond, Va. “I ended up getting a really good price for our home, paid off the mortgage, and can now live in more affordable housing. I can’t imagine ever buying or selling a home again except through an auction, and Williams & Williams does it right. They’re professional, on location, and very quick with results. I highly recommend them.”

Williams & Williams sales are on pace to double over last year’s sales, representing a fourth consecutive year of more than 100% growth, since re-structuring the company in 2003. For a listing of upcoming auctions, please visit www.williamsauction.com.

About Williams & Williams

Tulsa, Okla.-based Williams & Williams is a global auctioneer for all types of real estate. Separate client divisions serve the corporate, mortgage banking, employee relocation and trust industries. The company also serves wealth management clients through its Farm, Ranch and Premiereâ„¢ sales division.

The company’s auction based platform increases the net prices realized by sellers while providing buyers transparent, competitive bidding access in combined on location and online auctions. The company’s sales average 35 days on market and 30 days to closing on all properties, with less than a 2% fall out for all transactions. In the U.S., sales are held every month throughout all fifty states.

The live auctions are open to the public and potential buyers register by showing a driver’s license. All known property features and issues are disclosed along with standardized terms. Buyers deposit 5-10% upon sale and receive a clear title at closing. For more information about the company visit www.williamsauction.com.

Category: Auction News

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