Foreclosed properties auctioned off at convention center in Richmond

SLIDESHOW: Foreclosure auction

Terri Watson let out a triumphant yell as she walked down a corridor yesterday morning in the Greater Richmond Convention Center.

The Virginia Beach resident and her friend Kathleen White had found the bargain they wanted on a house where they plan to retire -- a 2,552-square-foot, waterfront home in Mollusk in Lancaster County.

They were the highest bidders for the property during an auction of foreclosed properties at the convention center. They won with a bid of $270,000 for the house that previously was valued at $505,000.

"We wanted it bad," said Watson, still grinning after signing all the financial paperwork for the house. "It needs some work, so we're going to work on it the next three years and use it as a weekend getaway."

About 400 people turned out for yesterday's auction, conducted by Irvine, Calif.-based Real Estate Disposition Corp.

The sale brochure established the previous value of each property as the appraised value in connection with the most recent mortgage, the most recent asking price, the assessed value, or the most recent broker price opinion, whichever was higher.

"A foreclosed home doesn't do much to help real estate values," said Bob Michaelis, an executive vice president at REDC. "Take advantage of the opportunities presented."

Yesterday's auction wrapped up a two-day event that sold off more than 300 foreclosed homes in the District of Columbia, Maryland and Virginia. About 75 foreclosed houses in Virginia -- including 25 in the Richmond area -- were sold yesterday.

Some found the bargains they sought as many of the homes sold for about 50 percent to 60 percent of their previous values.

One bidder came out on top for a 2,525-square-foot home in Wake for $465,000. The house on stilts near the Chesapeake Bay previously was valued at $940,000.

Others weren't as lucky to find a deal, no matter how many different properties they considered. John Farnor was one of those. He bid on several properties but walked away empty-handed.

Farnor and his wife, Sharon, a financial manager at Carreras Ltd., set a limit they wouldn't venture past.

"They all went for a little more than we wanted to spend -- at least the ones we were interested in," Farnor said. "There were some fantastic deals there."

He was watching a 2,632-square-foot home on Gayton Road that went for $157,700 -- previously valued at $235,000 -- and a 1,692-square-foot home on Gladewater Court, previously valued at $228,000, that went for $122,500. They also looked at properties in Hartfield and Reedville.

Farnor said his wife kept him from getting carried away with bids.

"She wouldn't let me hold the card. If it had been just me, we would be broke," he said.

It was the opposite when Watson and White's house in Mollusk came up for bid. It was a house they had been considering for a while. They had made a purchase offer on the home before they discovered it was up for auction.

As bidding on the house increased, Watson was on the edge of her seat, raising the bid, until auctioneer Mark Bulezik pounded his gavel on the podium and declared her the winner.

White admittedly was nervous; it was the first real estate auction for both women. Watson was confident they had make the winning bid.

"When our number came up for the house, she wouldn't even give me the bidder sign. I had to grab it from her, she was so nervous," Watson said.

At yesterday's auction, $5.2 million was spent, as 70 houses were auctioned before a crowd of 350.

A total of $19.3 million was spent during the two-day Virginia auction. Saturday's auction brought in $14.3 million as 177 houses were auctioned in front of 1,200 people.

Jeff Frieden, chief executive of REDC, said auctioning the houses provides a boon to the economy.

"When we put a family into a home, they're paying a mortgage, property taxes, gas, electric and water bill, and they're hiring landscapers, painters and electricians -- all of which helps the economy move forward," Frieden said in a statement.

"A vacant home moves it backward, leading to the deterioration of the neighborhood."

Contact Jeremy Slayton at (804) 649-6861 or .