Auction Geared to First-Time Buyers

More than 150 houses and condos in Los Angeles County--priced at minimum bids of $50,000 to $160,000--will be auctioned to first-time buyers on June 6, the first major endeavor of a coalition called Los Angeles Partners in Home Ownership.

An estimated 1,000 people are expected to attend the auction, at 10 a.m. at the Los Angeles Convention Center. L.A. Partners, a 2-year-old coalition formed to promote homeownership among low- and moderate-income residents, consists of 100-plus government agencies, nonprofit and consumer groups, lenders and realty brokers.

The five lead partners are the Community Development Commission of Los Angeles County, the Housing Department of the city of Los Angeles, the U.S. Department of Housing and Urban Development and lenders Fannie Mae and Freddie Mac.

The properties to be auctioned are foreclosures owned by HUD, Fannie Mae, Freddie Mac, Los Angeles Neighborhood Housing Services, Landmark Development and others.

The houses and condos, ranging in size from two bedrooms to four bedrooms, are located in Los Angeles County, with the exception of the Antelope Valley.

To be eligible to bid at the auction, prospective buyers must take part in a 2 1/2-hour first-time-buyers workshop. The class will be given six times before the sale.

“Participants will be taught how to shop for a home, how to obtain a mortgage and close escrow, as well as the responsibilities of homeownership,” said Sheila Frye, homeownership coordinator for the county’s Community Development Department, which chairs L.A. Partners this year.

Instruction in bidding at an auction also will be given by Kennedy-Wilson International, which will conduct the sale.

Prospective buyers also must be pre-approved for a mortgage, Frye said, and the workshops will include an introductory session with one of several lenders participating in L.A. Partners.

“For families and individuals unable to qualify for a mortgage, counselors will provide budget and credit help,” she said.

The homeownership workshops--in English and Spanish--will be held at 9 a.m. Saturday, May 17, May 23 and May 30, and at 7 p.m. May 21 and May 28.

The seminars are free and will be held in Patriotic Hall, 1816 S. Figueroa St., Los Angeles. For workshop and auction information and reservations, call (800) 390-1714.

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Upon completion of the workshop, prospective buyers will be given a brochure with addresses and photos of the houses and condos in the auction so they can familiarize themselves with the properties.

There are income limits for participation in the auction, Frye said. For single buyers, $28,750 is the minimum income; $43,100 is the maximum. For a family of four, the minimum is $41,050; the maximum is $61,550.

Depending on the location of the home, down payment assistance may be available to buyers, Frye said.