NORWALK - Nearly 200 people turned out yesterday for the city's third tax sale in five years, including 57 who registered to bid on eight tax-delinquent properties.

Others were there out of curiosity.

"We came for the show," Norwalk resident George Dombakly said from his red velvet upholstered seat at Norwalk Concert Hall.

The city sought to recoup $4.3 million in outstanding taxes in the annual tax sale.

Properties owing more than $12,000 in taxes, or that had unpaid taxes for three or more years, were auctioned off yesterday, with minimum bids equal to the total delinquent tax.

Two hundred properties were originally slated for the auction block, but by the time the sale opened yesterday, city tax collector Lisa Biagiarelli's office had collected $4.1 million in unpaid taxes. Four were paid off yesterday morning.

Not including the $267,776 in unpaid taxes recouped in yesterday's sale, the city collected $1.25 million in overbids at yesterday's auction.

"We anticipated quite a turnout, simply because there are a lot of residential properties, and that's what tends to pique interest - particularly from people who are not investors," said assistant tax collector Al Palumbo said.

The real estate drama featured some big winners and losers.

Scott Merrell, a former independent mayoral candidate who is vying to be on the ballot for U.S. Rep. Christopher Shays' 4th District seat, may have lost his exclusive Wilson Point home in the sale.

Merrell, who is disputing the home's assessment of $3,322,500, refused to pay his nearly $110,000 tax bill in protest.

Carmelo Tomas of Wilton beat out 20 other registered bidders on the property with a bid of $725,000. He declined to comment.

With a second place bid of $700,000, Pradeep Singh of Norwalk was disappointed to lose out on the property. He hopes for another chance if Tomas can't pay by Friday's deadline.

"It was definitely a rush bidding that much money," Singh said. "I froze up. I was expecting someone else to come in and bid and it happened so quickly, as soon as she dropped the mallet I thought, 'I messed up.' "

Fairfield Realtor Guy Osa, a real estate investor and Realtor with Fairfield-based CT Real Estate Solutions, said Tomas got a great deal.

"I thought that house was going to go for at least $1 million, Osa said. But a lot of people are being conservative, because if the gentleman absolves the property, they don't want $1 million tied up in the bank."

Auction winners did not automatically walk away with the keys to the castle. Merrell can still redeem his property but would have to pay the interest on the winner's bid.

Property owners or lien holders have six months to redeem the property by paying overdue taxes, plus 1.5 percent per month on the total sale price - which goes to the bidder.

Overbids are returned to the bidder if the property is redeemed.

The auction winner otherwise receives the deed for the bid price and the overbid funds are turned over to state Superior Court, where the former property owner can file for the money.

Even if Merrell does pay up and reclaims his home, if he waits the entire six months, the winning bidder is due to make a tidy sum of $62,250.

"The strategy is go in and put the investment on a house because you're going to make a lot of interest. It's better than the stock market and better than the bank," Osa said.

Norwalk resident Michael Wang, who won a home at 90 Dry Hill Road for $170,000 with a minimum bid of $21,041, was interested in Merrell's property but sat out the bidding war.

"I'm very intrigued by it, by him and the situation surrounding the property, but I'm apprehensive about bidding on it," Wang said.

Merrell did not return a call for comment.

Two properties went to a single bidder who came in second on two other auctions. Richard Giordano, bidding on behalf of 95 New Canaan Ave. LLC, won 45 Soundview Ave. with $76,000 on a minimum bid of $30,793, and won 9 Eastwood Road for $243,000 on a minimum bid of $28,272.

Fairfield Tax Collector Stanley Gorzelany, who has conducted lien sales in his town, was there to see a tax sale, and said the turnout looked impressive.

"There's so much in the news about buying foreclosed properties, I think that raises the interest of something like this," Gorzelany said.

Some curious spectators agreed.

"Tax sales have been going on for 20 years. Now everybody's hitting the skids and is looking for a quick deal," Seymour resident Mike McDonough said.

Norwalk resident Bridget Elliott, who researched land records but did not bid yesterday, said she wouldn't be able to afford a home at market prices.

"This is the only way I would purchase a home in Norwalk, in foreclosure or a tax sale, because housing is so expensive here," Elliott said.

Rudy Gamboa, another Norwalk resident, has been following the progress of the tax sale. He alerted a relative's friend when he found his property listed on the boards, and the owner paid it off.

"I feel bad for the people. It's real tough if you put yourself in their shoes, they're struggling to make payments. I own my property, it's tough," Gamboa said.