LUXEMBOURG–Homes that are bought via auctions are increasingly being financed and at larger amounts, according to one company.
However, most of the larger purchases remain cash deals, according to another company.
Hubzu.com, a home auction website that sells lender-foreclosed homes and which is operated by Altisource, is reporting that from October 2014 to October 2015 it saw an 18% increase in home sales above $400,000. To date in 2015, approximately 40% of purchases made on auctioned properties have been financed, according to Hubzu. The company said the hottest auction markets are Florida, Illinois, California, Texas and Georgia.
In the ultraluxury auction market, just 10% of winning bidders are turning to financing those mortgages, according to Concierge Auctions, where the average sale price is $5 million. Those who decide to get a mortgage have 30 days to obtain financing before closing, she adds.