DaytonDailyNews.com

DAYTON — More than 20 residential properties in the region are slated for the auction block in the coming weeks, as the nation's largest auction firm of foreclosed properties makes it's way to Dayton.

Dallas-headquartered Hudson & Marshall's is planning an Ohio tour in early March, in which the company is slated to auction off 186 properties on behalf of several national lenders.

The firm will be in Fairborn on March 6 to auction off local properties valued between $5,000 and $250,0000 located in Middletown, Dayton, Springboro and Fairborn.

Auctioning off foreclosed homes, versus letting them go at sheriff's sales, continues to gain popularity as financial institutions strive to improve profits while reducing carrying costs.

While Hudson & Marshall declined to named which lenders it represents, it is not the only firm taking advantage of the current climate.

In recent weeks Irvin, Calif.-based RealtyTrac partnered with global auctioneer Williams & Williams.

"As the inventory of foreclosure properties continues to rise, banks are turning to real estate auctions as an efficient method for selling off inventories of repossessed property," said James J. Saccacio, chief executive officer of RealtyTrac, which publishes the largest national database of preforeclosure and foreclosure properties.

According to the National Auctioneers Association, the auction industry saw a 12.5 percent increase in 2006 in residential real estate auctions, which accounted for $14.2 billion.

Benefits in the auction process exist for both prospective buyers and lenders, said Erica Brown of the NAA.

Unlike trustee's and sheriff's sales, real estate auctions typically allow potential buyers to inspect properties beforehand.

For the lenders, she added, the chances of landing a truer market value for the property is increased because of the competitive bidding process. Additionally, sellers can decline the final bid, if they choose.

"With auctions, you also have a specific time and date in which the home is going to be sold, unlike the traditional selling of real estate where the home can be on the market for seven or eight months," Brown said.

Ohio and foreclosures

With the most recent data ranking Ohio seventh in the nation for home loan defaults, the Buckeye state seems to be at no loss for foreclosed properties.

In the Dayton region, one in every 602 homes has fallen into foreclosure, with 605 foreclosures filed in January.

Across the state, more than 8,000 foreclosures were filed last month, according to RealtyTrac.

Foreclosed property auction

What: A sale of more than 20 properties in the region.

Where: Holiday Inn, 2800 Presidential Drive, Fairborn.

When: March 6 at 11 a.m.

Host: Dallas-based Hudson & Marshall.

Online: Property listing at www.hudsonandmarshall.com

Requirements: Interested buyers must have 5 percent of the purchase price or $2,500, whichever is greater.