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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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Wow Location: RIchmond on Feb 18, 2008 at 03:42 PM
    Vultures flying and sharks swimming around the titanic. Its good to be in a spot of power to take advantage when others are at a loss.
  • by angelfire on Feb 18, 2008 at 08:58 AM
    Why am I not suprised one of these guys is an attorney. Attorney's delay the process until the homeowners have no chance of catching up on a couple house payments, clog the court with sometinmes false accusationas against the homeowners and have tea and crumpets with the judges to discuss tee times instead of reading the homeowners contradicting proof. The whole foreclosure system is geared toward the windfall activities of people like the Roses.News people need to get beyond the fluff.The bank never loses because they also put claims against everything the homeowner has left and claim whatever they want on the lien papers.
  • by Anonymous on Feb 18, 2008 at 03:00 AM
    Greed is good.

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