Six years after the housing bust, lenders are still offloading homes that have been in foreclosure limbo. And they’re stepping up their efforts.
In October alone, nearly 60,000 of those homes were scheduled to be auctioned off by banks, up 24 percent from the previous month and seven percent from a year ago, according to RealtyTrac, a housing data firm. That’s the highest level since May 2013.
These types of auctions do not typically attract traditional buyers. They appeal to investors with lots of cash who can stomach the idea of buying a home without stepping foot in it first. Many of the homes are occupied at auction time, which means potential buyers often can’t determine a home’s condition before purchasing it.