Thoughts on Foreclosure Auctions

I read the following article in today’s Houston Chronicle:

First-Timers, Pros Vie For Foreclosures

A reader named, NavyPop, left the following comment on that article:

I personally could not bring myself to profit off someone else misery. Nor would I feel comfortable providing that example to my wife and children. The church took it as a sign from God, really? Give me a break.

All I can say is it’s a good thing that not everyone thinks like NavyPop. Can you imagine the shape this economy would be in if no one profited off other people’s misery?

I would be willing to bet that NavyPop has taken advantage of going-out-of-business sales. Isn’t that profiting off someone else’s misery?

Lest you think I’m a cold-hearted capitalist, I do feel for those who lost their homes. I really do. But, the bottom line is that if you can’t afford to keep your house, you have to let it go.

That’s why I like foreclosure auctions. It’s a good way to clean out the existing inventory and get it into the hands of people who will use it. It makes sense.

7 thoughts on “Thoughts on Foreclosure Auctions”

  1. I bought a foreclosure and profited from someone else's misery. I'm also $15,000 in equity richer for it. Know what I'm doing with that money? Reinvesting it back in the house… and stimulating the economy at the same time. You're welcome, America.

    Some of the people posting on that message board are idiots. Absolutely ridiculous comments.

  2. chiliconqueso wrote:
    I earned the right to get my house because I said so, and the democrats agreed with me, then the bank stoled it. I want it back…give me my house.

    chiliconqueso wrote:
    I know who stole my house at this auction, I am going to make their lives HELL!!!!!!!

    This, right here, blows my mind. What a fool.

  3. Also, the more people bidding at foreclosure auctions, the higher the price on the house, meaning the more solvent the bank becomes, allowing it to lend out more money to folks in need of a loan. The credit market has really dried up in this country and that has had a significant and deleterious impact on individual and business lenders.

  4. I guess NavyPop only buys stocks on the high, too? Because buying low would be profitting off someone else's misery, right?

  5. Capitalism works by punishing those who make poor decisions and rewards those who are wise with their money. And as Alex posted, getting more people involved in the foreclosure auctions actually gets the economy rolling again.

  6. What NavyPop doesn't seem to understand is that these are auctions on FORECLOSED properties. The owner has already lost the house. They don't get the house back just because you didn't bid, genius.

  7. Yes, let's just not buy foreclosed properties, then the banks will lose even more money, lay off a whole lot more people who may end up losing their homes as well and, as Alex said, worsen the credit crisis and lead to more businesses closing and more layoffs. Yes this is brilliant.

    At least NavyPop feels good about himself.

    He reminded me of a very nice lady I worked with some years ago. She told how she was looking for a house and didn't buy a nice one for a good price because the reason it was selling well below the market value was a divorce. She told "I don't want to profit from other people's divorce". So let them wait even longer for a buyer when they really needed to sell fast. I was wondering if she was so generous why she hadn't made an offer above asking price. But I guess her generosity didn't go that far.

    Good points from everyone — anybody posted on Houston Chronicle as well?

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