Find that $590K tear down at the auction

Auctions of foreclosed properties are an ongoing affair in Detroit and other places where the glut of REO properties necessitates an "everything must go" approach. But since when did that include the San Francisco Bay Area? The San Francisco Chronicle today reports on an auction of 88 foreclosed Bay Area properties on Sunday that drew more than 2,300 people.

According to the story, the company that conducted the auction, Real Estate Disposition Corp., auctioned 290 homes in SoCal last month, had 107 properties up for sale Saturday in Sacramento, and is attempting to unload 47 properties in Modesto today.

If your idea of a bargain find at auction is a home with a five-digit price tag, here's a taste of the (un)reality of California's superheated housing market: a two bedroom 890-square-foot home in Menlo Park went for $590,000 Sunday. The couple who bought the house, which was listed for $740,000 four months ago, are reportedly buying it as a tear-down.

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