'Crazy' deals on Valley foreclosed homes at weekend auction

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Bank conducts auction due to overload

PHOENIX - The Valley real estate market is overloaded with foreclosed homes.

To get rid of the glut, banks have put nearly 1,000 of them up for auction. You have probably seen some auction homes in your neighborhood with big yellow signs plastered to the garage doors.

They are going for 50 or 60% below what they are worth. Six-hundred foreclosed Valley homes went up for auction this weekend.

Agent Carmen Humphrey admits, "There's an overwhelming amount of homes."

A couple of them really stand out. One house at the base of Piestewa Peak was valued at $2 million but bidding opens on Sunday at $360,000.

Another central Phoenix home is valued at $700,000 but the starting bid will be $99,000.

These are rock bottom bids on foreclosures across the Valley. Fehima Sharifi, a potential buyer, explains, "One of them was going for $500 and I just thought that was crazy."

And the crowd went crazy sparking bidding wars and driving up the prices. Still, each foreclosure home sold for far below the valued price.

One first-time buyer landed her bargain. She says, "Originally valued at 152 and I got it for 85."

There were first-timers mixed with experienced investors. Humphrey says, "There were some incredible deals but it depended on the area so some areas had better deals than other areas."

The best deals on Saturday were found in outlying areas like Buckeye, El Mirage and Surprise.

On Sunday foreclosures in the City of Phoenix will go to the highest bidders.

Another couple hundred homes go up next week. The bidding for one central Phoenix home valued at $300K is expected to start at only $69K.