On a rainy morning in early February, a determined clump of investors huddle under dripping eves on the north steps of the Fort Bend County Courthouse.

"I have 72; do I hear 73?" asks an auctioneer in a ritual that will be repeated several times this morning. "Going once, going twice, sold to that gentleman for $73,000."

The county’s monthly first-Tuesday foreclosure sale takes about a half-hour, and when it’s over, Sugar Land investor Roy Parikh is one of several successful bidders. He will end up paying $40,500 for a two-story brick and frame house in Missouri City’s Hunters Glen subdivision — on the books at $124,160 — that is being sold for back taxes.

"I look for value," said Parikh, who is a regular at these monthly constable’s property sales. Fort Bend has four constables.

Parikh hasn’t been inside his new house yet, and will decide later what repairs are needed.

"We will either rent it or sell it," he said.

Postings up in 2009

According to Houston’s Foreclosure Information & Listing Service, foreclosure postings were up 32 percent last year in Fort Bend County, from 5,398 in 2008 to 7,151 in 2009. Actual foreclosures in the relatively upscale master-planned communities and well-tended neighborhoods west of Houston were down 9 percent, as banks delayed or worked with homeowners to modify mortgages.

Fifteen properties originally posted for sale at Fort Bend County Precinct 3’s February foreclosure sale were whittled down to only five by sale day, noted Sgt. Jimmy Hutson, who acted as auctioneer. That can be because the property owner finds a way to pay the outstanding taxes or other debts that led to the listing, Hutson said.

While numbers may be down, the effects of foreclosures still are being felt in the Katy and Fort Bend County area. Communities from Cinco Ranch to First Colony are doing what they can to minimize the fallout, from working with banks to mowing the lawns of neglected properties. Sellers in a buyer’s market face new realities.

Realtor Stanley B. Sanders represents the owners of a Hunters Glen property on the same street as the one sold this month for less than half price on the courthouse steps. While that foreclosure is a bargain for its new owner, it causes problems for Sanders’ clients, who have their smaller one-story home listed at $104,000.

Property values drop

"It makes the buyers look at the cheaper properties first," said Sanders. "It’s actually dropping the property values down."

Sanders advises his clients to put some money in their properties — upgrading appliances or replacing laminate countertops with more upscale materials — to make them more competitive. "You’re going to have to give the buyers a better deal or a better-looking house to be able to compete."

In Nottingham Country in the Katy area, homeowner association officials keep residents informed about foreclosure properties in their 2,300-home subdivision between Fry and Westgreen roads. In October 2009, there were three. By January 2010, the number had risen to 13.

Don Mach, president of the Nottingham Country Community Improvement Association, was not overly concerned. Most of properties listed in January were already under contract by February, he said. While they were selling below market, it was usually because they needed repairs, he added.

"Right now we’re running two to three a month, on average. Not great but it’s going up. I don’t think it’s going to have a negative effect on Nottingham Country. We’d have to see 50, 60, 80 foreclosures out there to really bring down values."

Mach said most Katy-area foreclosures are linked to the subprime mortgage crisis. "There are a lot of foreclosures in the Katy area, but they’re on the north side of the freeway, which is pretty much where the beginner houses are."

Properties maintained

To fight the potential effects of foreclosures, Mach admonishes his neighbors to look after any neglected properties. On his own street, neighbors recently took turns mowing a foreclosure property, he said. Observant neighbors called the constable when they noticed kids were gathering in the backyard of another empty property, he said.

"Keep your eye on these things. Let’s keep them looking good on the outside. That’s the point we’re trying to make," Mach said. "It’s good for everybody."

Ralph Troiano, whose CIA Services represents numerous HOAs in the Katy and Fort Bend County areas, cites a University of Houston study that shows the impact of high foreclosures is worse — and the recovery slower — in communities without active homeowner groups.

Troiana said his agency checks foreclosure listings each month, and acts immediately to contact the bank to make sure it knows about maintenance issues.

"If necessary, we start doing the necessary maintenance so it doesn’t draw down adjacent property values. Taking that action, spending a little money — a little effort, a little time to minimize the impact, whether it be crime or the visual blight, is very important."

Troiana’s agency represents 22 communities in Fort Bend County, including parts of Cinco Ranch, Seven Meadows, Cross Creek Ranch, First Colony and Missouri City.