Then who else? I don't think many homeowners buy their homes from foreclosure auctions; they go through brokers and buy move-in ready homes directly from the sellers, unless someone is very, very handy.
If those homes remain unsold because nobody wants to buy a fixer-upper, then they become a blight on the neighborhood as the lawn doesn't get mowed, the landscaping becomes overgrown or dies, the interior becomes dirty from lack of use and care, etc.
There might be a few jewels to be found at auctions, but I think most are either people who defaulted on mortgages and couldn't maintain the house, elderly people who died and probably hadn't updated the home for many years, or people who misused the house and then walked away from it. There might be some nice homes that were quickly sold due to a divorce or a sudden work relocation, but otherwise those homes would stay unsold unless someone was willing to step in and repair the home.
-PJ
I spent some time searching for a house in rural N Calif. Looked at 63 properties in one week.
Finally settled on log house on 5 acres-—ALL OVER GROWN & dead/dying trees everywhere.
I bought it—turned out to be a foreclosure-—which I didn’t know when I first looked at it. Only one owner—and couple got divorced over “building their own home”. NOT UNCOMMON.
I spent just short of 3 YEARS with a chain saw cutting down dead/dying/crippled trees & getting “widowmakers” down. Then fenced it into 6 enclosures for horses. Worked every day weather would allow and USED UP 7 chains on my Stihl chain saw.
I had NEVER even used a chain saw before that purchase. I am now on my 13th GALLON of chain oil, also.
I was NOT seeking a foreclosure-—just happened. I owned it over 16 years & ONLY LEFT because LIBERALS were flowing in like a train wreck.
This was rural area-—They wanted sidewalks-—streetlights-—the county to REMOVE all the wildlife—you name it.
I had vastly improved the property. Whatever other factors caused it to be worth more were not due to anything I did above my labor & fencing. I made enough profit to buy MORE acreage and brand new house in N Nevada high desert for cash.
I do NOT consider myself a carpetbagger-—
But Flippers are performing a community service in keeping the values of the neighborhood up.