Auction.com: More than Half of Foreclosure Sales to Third-Party Buyers Become Owner-Occupied

Auction.com, Irvine, Calif., said 56 percent of properties sold to third parties at foreclosure auction were owner-occupied one year after the foreclosure auction date, compared to 43 percent of properties that reverted to the lender.

The company’s Q2 2019 Seller Strategy report analyzed disposition strategies employed over the past year for more than 23,000 properties that went to foreclosure auction through its platform, which accounts for nearly 50 percent of all properties sold at foreclosure auction nationwide.

Key findings:

–Properties sold via “Day 1” REO online auction sold on average 95 days faster than REOs sold via the MLS.

–Properties sold to third-parties at foreclosure auction executed higher relative to credit bid at the foreclosure sale than did properties sold as REO –both MLS and Day 1 REO sales.

–Properties in Opportunity Zones that sold to third-party buyers at foreclosure auction executed 5 percentage points higher relative to reserve than properties located outside of Opportunity Zones.