DROP BIDS: auctioned-off homes cheap | Marketplace From American Public Media

Found this gem of an article written March 19 2010

How to get auctioned-off homes cheap | Marketplace From American Public Media:

"Tom Ruff spends his work day tracking housing data, looking for these so-called 'drop bids.' As an example of how drop bids benefit a professional investor, he pulls up a four-bedroom house on his computer. The property's opening sale price was around $174,000, but sometime before the auction...

RUFF: The bid was dropped from $174,907 to $55,000.

OK, that might sound like an irresistible deal, but there's no way that you, the casual buyer, will ever know about it. Even professional investors wouldn't have a clue, unless they got the inside scoop, which is probably why only one person was around to bid on that $55,000 house in the first place. Ruff says that investor, by the way, flipped the house a month later and made an $80,000 profit.

RUFF: When you're looking for impropriety, always follow the money. And there's a lot of money in foreclosures right now.

Since June, Ruff has counted 1,200 drop bids in Arizona. If you want to get the inside track on those deals, it helps to know a guy like Brad Kelly. His company constantly compiles data for clients who make a living at these auctions. The moment he sees a drop bid, Kelly can send an e-mail blast to those investors."

read more by clicking title link at top of article

CHECK ALSO THIS ARTICLE from last year:

Ilegal foreclosure auctions in Maricopa County

"It's highly improper and legally questionable for a trustee to drop the bid on a foreclosure the day of an auction. Both borrowers and bidders can be hurt," said Michael Bosco, trustee attorney for Tiffany & Bosco, which handles more foreclosures than any other Arizona firm. "I don't like the auction mess going on the courthouse steps. Any trustees playing games with last-minute changes in bids down there need to stop now."

All of Tiffany & Bosco's auctions are held in one of its office's boardrooms.

Oversight

The foreclosure process is mandated by Arizona state statutes, but with little oversight.

"There's no regulating body overseeing trustee-sale auctions in Arizona," said Beth Jo Zeitzer,

To read more of this article click title link above article. my added note: I find this interesting since Tiffany and Bosco are the ones that represent both BAC and BNY in our situation.