By Ryan Jackson
Flooded with an inventory of foreclosures, the government’s Federal Deposit Insurance Corporation (FDIC), which has taken over hundreds of failed banks since the collapse of the U.S. real estate market, is holding an online auction to sell off some of its properties.
The FDIC is auctioning-off 50 Midwest homes and commercial properties that were foreclosed as part of the ordered takeover of banks that it insures. The homes, condos and duplexes were foreclosed by the FDIC and local banks that were closed by the government regulator. It’s the first time that the FDIC will conduct an exclusive online real estate auction.
The FDIC chose Micoley Auctions, a Green Bay, Wisconsin based firm to hold the auction after the company auctioned off properties in seven northeast states last November. The properties featured in the upcoming sale are located in hard hit Michigan, Illinois, Indiana and Wisconsin.
“The FDIC has included a wide variety of properties at very attractive pricing, with some assets selling absolute,” said Wade Micoley, who is president of the company selected to hold the auction. Homes listed on the company’s website include modest Midwest single family residences with low reserve prices.
“This unique venue has been developed to make purchasing FDIC assets a simple, enjoyable experience,” said Micoley.
The auction is already attracting a nationwide audience of followers, with a variety of properties being offered, including single family homes, condos, duplexes and raw residential and commercial land. Commercial properties will also be auctioned during the event, which is already underway. Bidding information may be obtained on the FDIC website.
The FDIC sold nearly $2.5-bilion in foreclosed properties in 2009, but has had trouble keeping up with the sale of its bloated inventory of homes and other properties since the government began to close hundreds of banks more than four years ago.
The FDIC ordered the sale or auction of 122,180 properties in 2010, the last year for which figures are available bringing in $469-million.