Potential buyers look for bargains in foreclosures

By Rolf Boone | The Olympian • Published March 30, 2008

LACEY — Thurston County foreclosure notices have increased more than 50 percent in the first quarter of 2008 compared with the same period last year, prompting one real estate agent to begin offering tours of homes in various stages of foreclosure.

Through the first three months of the year, the county has received 228 foreclosure notices, up 54.1 percent from the 148 received during the same period last year, county licensing and recording manager Terra Howell said.

South Sound real estate agent Phil Sharp has tried to capitalize on this increase by offering tours of foreclosed property to potential investors.

On Saturday, about 15 people loaded into two white vans and toured 12 homes in Lacey and Olympia that were listed for sale by banks, or by owners hoping to sell their houses before they are sold at auction.

After a foreclosure notice, also known as a trustee's notice, has been issued, the homeowner typically has about 90 days to settle missed mortgage payments and other fees before it goes to auction. Those auctions occur weekly in front of the Thurston County Courthouse.

If the property doesn't sell, it typically reverts to the lender, Sharp said.

Foreclosure tours have become more common in states with slower real estate markets, such as Florida, Nevada and California. Sharp acknowledges that Thurston County's housing market is generally healthy.

The county has a steady influx of new buyers because of its growing population, and median prices have remained steady, he said.

In February, Thurston County median home prices rose about 4 percent; that compares with a nearly 8 percent drop in Pierce County median home prices, according to Northwest Multiple Listing Service data.

Thurston County hasn't been immune from the "mortgage mess" because of past lax lending standards and a slower housing market brought about by higher inventory levels, Sharp said.

A few years ago, there were only about 400 homes on the market to choose from, he said.

Since, inventory levels have surged past 2,000 homes. The number fell to 1,977 homes in February, according to Northwest MLS data.