Home Auction Fulfills Dreams of Many

Patricia Ayala was among dozens of Southern California residents who realized a long-standing dream Saturday. The 34-year-old garment worker from Echo Park was the top bidder (at $68,000) for a three-bedroom Carson house that was one of 162 houses and condominiums offered in a special auction for first-time home buyers.

“It’s beautiful. There’s a yard and a lot of space for the children,” Ayala said. “She likes the price the most,” said her real estate agent, Josefina Gonzalez.

The auction was the first major endeavor of a government-business coalition called Los Angeles Partners in Home Ownership, formed to help low- and moderate-income residents get into the real estate market.

“We want to empower families to become active members of their communities. One major factor in strengthening neighborhoods is home ownership, and it’s part of the American dream,” said Carlos Jackson, executive director of the Los Angeles County Community Development Commission, the lead agency in the coalition.

The properties offered at the Los Angeles Convention Center auction were foreclosures owned by the U.S. Department of Housing and Urban Development and Federal Home Loan Mortgage Corp., as well as some new houses developed through special city programs.

About 300 people attended the auction, bidding on properties from Diamond Bar to Palmdale that ranged in size from two to four bedrooms. Fifty-one houses and 24 condominiums were sold.

Bidders were required to attend a 2 1/2-hour workshop on home ownership that was offered six times in May--in English and Spanish. The classes covered such topics as shopping for a home, obtaining a mortgage and closing escrow.

There was no income cap for auction participants, but special financing was available through L.A. Partners for low- and moderate-income buyers.

Prospective buyers also had to secure pre-approval for mortgages. Those who completed workshops received a list of available properties, and homes were open for visits before auction day.

Camilla Frazier literally jumped for joy when she was named the winning bidder on a Northridge condominium. Frazier, a 24-year-old Encino resident, had not seen the property until nearly midnight Friday, after driving her younger sister to her high school prom. Because the unit’s electricity was off, she toured the unit by candlelight. She liked the three-bedroom condo enough to bid $70,000, more than she had planned to spend. “I really wasn’t going to go over $62,000, but the person behind me kept bidding so I bid some more,” Frazier said.

The properties not bought Saturday will be sold or auctioned by the agencies that own them. Another first-time buyers auction will likely be held in October, said Sheila Frye of the community development commission.

Jackson, the commission’s director, said the agency may visit some new homeowners at random in the coming months to offer advice on such subjects as maintenance and also to ensure that homes weren’t bought by speculators.

Jackson said the rewards of the program offset any risk. “For every one person who might try to defraud the system, there will be 25 families who will get a house,” he said.