Last week, I attended a foreclosure auction at the parking garage near an office building in Bellevue. Unlike most condo auctions where you will see a crowd of a couple hundred people showing up, there were only around 50 people attending this auction. Half of them were realtors just like myself trying to get an better understanding of how foreclosure auctions work. The other half were individual investors, aspring investors, and professional group investors assisting their clients in the bidding.
For those of you who are interested in a foreclosure auction, this is how it works. When a bank forecloses on a property, they will hire a trustee (individual or company) to facilitate the foreclosure process. In King County, Trustee sales take place at two locations. One of them is in Bellevue and the other one is at the King County Courthouse in Seattle. They are required to be held in a public place so that members of the public can have access to view the auction. Auctions are held every Friday at 10am and 2pm. You can find a list of foreclosure homes on the USA-Foreclosure website. On this particular day that the auction was held, there were over 200 homes on the list. Three auctioneers were calling out in alphabetical order by the foreclosure owners' names, followed by address and then the minimum bid.