Brothers Make The Best Of Slow Housing Market

For many homeowners foreclosure can mean turning the American dream into a nightmare.
But for Dan and Curt Rose, they're living their dream. Dan is an attorney, while Curt owns his own construction company. The brothers invest in foreclosure property together.

"What you're trying to buy is real estate on a wholesale price level, instead of retails," Dan Rose says.

According to Dan Rose, in the last couple of years, the number of foreclosed properties has more than doubled.

"It's the economy slowing, sub-prime crisis, a lot of people have adjustable rate mortgages and have trouble meeting the debt service," Rose said.

Divorce, health issues, and financial problems can be added to that list.

The brothers made their recent house purchase at the Master Commissioners Auction. That's an event which takes place every Monday at the Fayette County Courthouse.

"I think the commissioner's sale serves a useful purpose," Rose said. "It clears the market and helps lenders liquidate property and in some ways, keeps the real estate market going."

Homes at the auction are going for 30 to 50, and sometimes hundreds of thousands of dollars less than their appraisal price.

One home appraised for $900,000, but it was just bought back by the bank for $650,000.

While some say that's a great deal, Rose warns you should know the auction is not for amateurs.

"You can't look at homes really, there's issues regarding financing," Rose said.

Plus, he adds, you don't get the deed immediately, and you're still held responsible.

Plus, there's rite of redemption. If the house doesn't sell for at least two thirds of the appraisal price, the owner can come back and buy it within the year.

The brothers are working to finish a house they bought for $259,000 at the auction.

They say they'll list it for around $450,000.

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