Updated at: 10/08/2009 11:08 PM

Foreclosed Homes Auctioned

Edith Hadlock has lived across from 1622 Ogden Avenue for 45 years, so she was there about 6 months ago, when her neighbor abruptly left. "Then she told me one day, I'm gonna get out of here. I don't know where or how, but I'm gonna move," said Hadlock. What Edith didn't know, was that the home went into foreclosure.

165 days later, the mortgage lender put it up for auction in Duluth. Less than 10 people came to bid on that home and two others in McGregor, MN and Iron River, WI. Listed on the market for $65,900, the home on Ogden went for $35,000 at auction. The buyer's realtor said it's a good investment.

"It went well. He won it. He paid a little more than he was planning, but I guess that's the way these auctions go," said Mike Raivala, of ReMax.

The house needs some work, as is the case for many foreclosed homes. The buyer plans to fix up the property, and then rent it. Brad Pace, Hudson and Marshall Sales Manager, Brad Hudson says most of the homes they sell need repairs, so the properties are attractive to investors. "That's one step that's positive in all this. Its going to take somebody with the cash flow, to do the repair, do the fix up," said Pace.

Across the street, Edith Hadlock is glad the home will get some help and that she will soon have new neighbors. "It's always nicer to have somebody living in a building rather than stay empty," said Hadlock. Two other homes were purchased at Wednesday's auction. A home in Iron River, Wisconsin was listed at $192,900 and went for $130,000. And a home in McGregor, MN was listed at $89,900, but sold for $55,000.