Auction Diary: Anyone Want This House? Anyone? Bueller? Bueller?

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NORWALK -- Attending an auction of foreclosed houses for the first time brings to mind the line from ‘Ferris Bueller’s Day Off’: Anyone? Anyone want this house? Anyone? Bueller?

That’s because 90% or more of the foreclosed homes put up for auction in California do not sell. The banks and lenders set the minimum bid, and it’s invariably the amount that is still owed on the mortgage. And in this market, with so much aggressive financing, most of these house are worth less than that. So no one bids, and the only bid on the table is the original bid from the bank or lender that owns the mortgage.

Today on the steps of the LA County Courthouse in Norwalk a crowd of about 30 people shuffled in the sun, waiting for auctioneer Doug Beckstrom to do his thing. Standard attire was jeans, t-shirt and sunglasses. The auction went like this: first house: postponed. Second: postponed. Third: postponed. More postponements. A cancellation.

Finally some action. The house at 39246 Raphael Lane in Palmdale. Anyone bid $346,500? Anyone? Anyone? No bids. Sold back to the bank that owns the mortgage. (Note: that’s the house pictured above. It is listed for $365,000).

Then: 210 E Avenue R2 Palmdale. Anyone bid $304,812,83? Anyone? Anyone? No bids.

Next: 1875 Fashion Avenue in Long Beach, $515,176; Anyone? No bids. (Comment from Long Beach real estate broker watching the auction: ‘Oh, that’s ridiculous. Five-fifteen for Fashion? Ridiculous.’)

You get the picture. ‘About ten percent sell, the other 90 percent go back to the bank,’ says Beckstrom. Of the 92 houses he had on his list to auction Friday, he expected to sell three, maybe four. The rest would go back to the only bidder, the banks. ‘I’ve done this for 25 years,’ he said. ‘The banks will drop their bids eventually.’