Those bastard auctioneers

What absolute bastards these people are:

Northern Rock and Bradford & Bingley have been accused of profiting from the misery of repossessed families by disposing of their homes in showbusiness-style sales.

Critics claim that the high commission charged to buyers by Real Estate Disposition Corporation (REDC), which claims to be America’s biggest seller of foreclosed property, mean that there is less money for borrowers to pay off their mortgage debts.


At three “lender repossession auctions” this week properties were selling for tens of thousands below their previously estimated value, with many going for less than half price, leaving many owners with huge outstanding mortgages.


Bradford & Bingley and Northern Rock said yesterday that they set minimum reserves to ensure that the homes were not sold at an unfair value. Bradford & Bingley, whose mortgage book was nationalised last year, has between 20 and 30 properties in the auction. “These were properties that we could not sell via agents or anywhere else,” it said. “We have a reserve price, which is the same reserve we placed with agents. We did not know about the buyers’ commission; it is a bit cheeky, really.”

Northern Rock has 11 repossessions in the sales. All had been unsuccessfully marketed by estate agents for at least 12 months.

So these houses have not sold for 12 months then. So what do these disgusting Yanks do?

Dozens of homes repossessed by two nationalised banks are being sold this week for knockdown prices at a series of auctions where buyers are whipped up into a frenzy.

A frenzy, eh?

Five hundred potential bidders packed a hall at the Birmingham NEC on Thursday. The sale started with a blast of power rock as the auctioneer prepared for the first of 94 lots. Two assistants with microphones stalked the sales room geeing up buyers.

Hundreds upon hundreds of potential buyers, whipped up into a frenzy. How callous, how appalling!

Really. People who manage to sell something that no one else can. Disgusting, isn\’t it? should be shot……


3 thoughts on “Those bastard auctioneers”

  1. The covered this on Wake Up To Money a couple of morning’s ago. I didn’t really follow the reasoning but apparently there are 2 “crimes”:

    One is that the auctioneers add their commission to the sale price rather than have it embedded.

    The second, and most heinous from what I could gather, is that they are American and taking away work from good old British auctioneers.

  2. There was one remark in the Telegraph that I didn’t understand. It said that British auctioneers charged 2% (on the seller) vs the Yanks’ 10% (on the buyer). That’s quite a discrepancy, though if it results in a sale vs a no-sale, I suppose it might make sense.
    (P.S. Was the purpose of the power rock to drive away non-moronic potential buyers?)

  3. The NEC’s huge. Of course they had microphones.

    No problem with the auctioneers, but I do object to the reposessions occurring after nationalisation. For your bank to foreclose on you is fair enough. For the Government to take your tax money, use it to buy your bank, and then get the bank to foreclose on you is morally disgusting.

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