At Tremont Tower in Montrose, one person’s loss is potentially another’s gain.

“Originally these sold in the 400’s to 500’s and now they’re selling 130 to 175,” said Becky Ellis who is a real estate broker.

This is just one of 24 properties A.M. Real Estate will have in a foreclosure auction later this month at the Reliant Center when more than 240 Houston homes will be auctioned off.

The savings will be significant.

In fact, the opening bid for one condo is $49,000 when it was previously valued at $300 plus.

The opening bid for one home 11 News Reporter Brad Woodard looked at starts at $349,000.

It was originally valued at $949. 

“A lot of them are young people who are just out of college.  And they don’t  realize their salary is not going to go up as fast as they dream it does,” said Ellis.

Blame it on adjustable rate mortgages. 

Thing is, they adjust and not in the direction you’d like. 

But it doesn’t end there. 

KHOU - TV

This is one of the properties that will be auctioned.

By the end of next year, it’s estimated that ARMs will increase homeowners’ monthly payments by $600 billion nationwide.

And forget bankruptcy.

“Unless the law is changed to allow bankruptcy judges to change the terms of these mortgages, these folks are just going to lose their homes. They’re going to lose them in mass,” said Thomas Black. He’s a bankruptcy attorney.

Congress is considering such a change. 

In the interim, while there may be short term winners, the long term loss remains something of a question mark.