Here Come The Auctions

From NJBiz:

NJ Affordable Homes Portfolio Going Up for Bankruptcy Auction

Properties owned and controlled by bankrupt residential builder NJ Affordable Homes Corp. (NJAH) in Woodbridge will be put up for auction. Chicago real estate auction company Sheldon Good & Company Auctions NorthEast and real estate firm DJM Realty in Melville, N.Y., will handle the sale of the 340 properties from September 29 through October 1 at the Meadowlands Convention Center in Secaucus.

The Securities and Exchange Commission went to court last September to freeze the assets of NJAH and its president Wayne Puff. The SEC alleged Puff and the company sold at least $40 million notes in unregistered offerings in a Ponzi scheme to more than 490 investors across the country. NJAH was liquidated under Chapter 7 of the bankruptcy code. The U.S. Bankruptcy Court District of New Jersey in Newark granted the trustee a motion to sell all 340 properties held by the company.

From PR Newswire:

Good & Company Auctions NorthEast and DJM Realty in Joint Venture to Conduct Largest Residential Real Estate Auction in New Jersey

Sheldon Good & Company Auctions NorthEast, ( the nation’s premiere auction and brokerage company, in a joint venture with DJM Realty, a national real estate disposition firm based in Melville, New York, has been retained by Charles M. Forman, the chapter 7 trustee appointed for NJ Affordable Homes Corp. (NJAH) to sell at auction 340 properties owned and controlled by NJAH

The auction venue is being announced for September 29th, 30th and October 1st at the Meadowlands Convention Center in Secaucus, NJ.

Mr. Forman, of the law firm of Forman, Holt & Eliades, LLC, said: “The auction sale of the NJAH portfolio is the most efficient and cost-effective method of generating a substantial pool of funds from which those who were hurt by this massive fraud can be compensated.”

Mr. Forman added: “Private investors, conventional lenders, other parties and the community as a whole have been victimized by the scheme. We believe that the auction method devised by this real estate team will result in the expeditious sale of these properties thereby ultimately benefiting all concerned, including the investors, lenders, tenants and their neighborhoods.”

Jeffrey Hubbard, Executive Managing Director for Sheldon Good & Company Auctions NorthEast, LLC, said: “This will be the largest residential auction thus far to be conducted in New Jersey, and most likely, in the United States. This auction will have something for everyone: the builder, homeowner, developer and investor. The portfolio of properties includes 80 single-family homes, 78 two-family homes, 96 three-family homes, 19 four-family homes, 2 six-family residences, 57 parcels of land, and 8 commercial properties. This extensive portfolio includes property in every county in New Jersey except two. 195 properties are located in the Essex
County area.”

Mr. Hubbard said that all properties would be sold absolute regardless of price, free and clear of liens, subject to the approval of the United States Bankruptcy Court District of New Jersey presiding over NJAH’s bankruptcy case.

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13 Responses to Here Come The Auctions

  1. grim says:

    1990’s all over again..

    Home Prices Do Fall

    In a Cooling Housing Market, Real Estate Auctions Are Hot
    December 3, 1989, Sunday
    By CHARLOTTE LIBOV (NYT); Connecticut Weekly Desk
    Late Edition – Final, Section 12CN, Page 1, Column 5, 1450 words

    AUCTIONING off property, a sales method common in foreclosures, is being used more and more to market houses and condominiums in Connecticut as the demand for real estate continues to slacken.

    With Condos on Their Hands, Builders Turn to Auctioneers
    Published: May 17, 1990

    The bidding had reached $247,000, and Steven Good – natty as a banker, with a red rosebud boutonniere -raised his gavel and put a little more pitch into his patter.

    ”Do I hear forty-seven five, forty-seven five?” he implored the crowd assembled last Saturday at the Meadowlands Hilton Ballroom in Secaucus, N.J. ”C’mon ladies and gentlemen, don’t let your dream house get away from you, gimme-gimme-gimme forty-seven five.”

    A few rows back, Meryl Stevens sat with her fiance, Richard Berk, crunching numbers. The three-story town house on the New Jersey bank of the Hudson had been listed at $565,000 last year, and here it was being auctioned off for less than half price.

    Residential Auctions More Popular
    Published: October 7, 1990

    RESIDENTIAL real-estate auctions, traditionally perceived as the last resort of desperate developers, are fast becoming an acceptable, sometimes preferable sales strategy, real-estate experts say.

    In the midst of a real-estate slump that has left the state blanketed with for-sale signs, anxious sellers are more quickly turning to the auction block to lure cautious buyers to their properties. And according to auctioneers, real-estate agents, developers and the buyers themselves, the strategy is working better than anyone expected.

    Are Auctions Driving Housing Prices Down?
    Published: October 6, 1991

    LAST spring, as many housing developers despaired of hitting their price goals in an open market and began to auction off their apartments and town houses, some holdouts protested that the auctions would push the market lower and drag down prices on all properties.

    Auctioneers, eager to break into the New York area’s rich market of overbuilt and undersold housing, insisted that a quick sale of most units in a troubled development, even if at a discount, would shore up the prices of the remaining apartments and houses and secure higher prices for them.

  2. Anonymous says:

    I think the guy on
    Valley Road in Clifton
    is in trouble.

    His auction should
    be not to far off in the

    So overpriced its sad.

    Has anybody been by these?

  3. Richie says:

    The valley road “estates”. Yes, we’ve discussed these many times in the past.

    To call these estates is ridiculous.

  4. Jpatrick says:

    There are many best-selling real estate authors who might know a thing or two about auctions. Look at this:

  5. Stan says:

    There is a spreadsheet of recent sales in Hoboken posted on Hoboken411. It includes the square footage of the apartment.

    If you graph this data in excel showing the date and price per sq. ft., it shows Hoboken prices being essentially flat for the first half of the year.

  6. Anonymous says:

    I am planning to bid on

    532 Hunter Avenue
    Scotch Plains, NJ

    suggetions please?

  7. grim says:

    Any more information?

    Otherwise, the only suggestion would be to wait.


  8. jayb says:

    Anyone know about these auctions? My parents are investors, but they’ve never done auctions. Think you could get a good deal on one of those multi-families?

  9. Anonymous says:

    To Anon at 8/29/2006 04:26:42 PM

    Seems like you may be trying to SELL, not buy. If it’s sell, I say drop your price 10%-20% below comps. If, by chance, you are trying to buy – as grim said – wait…

  10. Smellin fish at the Auction says:

    Auctions to me sound like problem. Liens anyone?

    If these things were such a great deal, why weren’t they sold?

    Yeah, maybe there’s so much on the market right now that the sellers are trying the attention ploy. But it’s a gamble, no?

    Auctions should be for items of difficult to determine value, traditionally. Perhaps high value to specific searchers, but unknown.

    Houses are not Picasso’s or Martin Luther King’s papers.

    Call me old-fashioned, but I’m smelling fish in de bay, today. I’ll just stick with Gorton’s or Mrs. Paul’s.


  11. grim says:

    I agree Pat. I am planning on attending, however. Not to buy, of course, but just to watch and talk to the attendees.


  12. Anonymous says:

    O.K., Grim, you caught me – thinking about going, too.

    There was one in the paper here on Sunday. First ad in RE, so it caught my eye. Haven’t see that here.

    Billed it as a farm with subdivision potential.
    10-Acre Bucks County Farmette


    Pat (future farmetter?)

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