With the number of foreclosures hitting record-level highs in pockets around the country—the Mortgage Bankers Association reporting the highest level of foreclosure and delinquency rates since 1979—lenders and servicers are looking for various ways to dispose of aged REO inventory.

Given the state of certain markets, specifically California, which experienced 109,000 foreclosure starts in the first quarter of 2008, along with a quarterly rate of foreclosure starts on subprime adjustable-rate loans, made to borrowers with blemished credit, at 9.24 percent—Dallas-based Hudson and Marshall is using their auction platform to sell more than 500 homes in Fresno, Modesto, Stockton, Seaside/Salinas, Yuba City, San Francisco Bay/Oakland Area and Sacramento.

'The unsually high inventory of foreclosures flooding today's housing market has signifcantly reduced prices to more affordable levels, which is enticing buyers back into the market,' said David Webb, principal at Hudson and Marshall. "We're seeing first time homebuyers and owner occupant buyers come to our auctions because they know they can get extraordinary savings in what's already a depressed market.”

The auction is scheduled for June 16 to 22, with buyers able to surf the Hudson and Marshall Web site to view and buy properties online.Jacqueline Gilbert | 06.13.08