Apparently auction participants have been colluding with each other to hold down the bid prices, depriving banks and homeowners of the true value of the auctioned properties.
Palm Coast, FL – June 3, 2013 – Federal authorities are cracking down in several states on bargain-hunting foreclosure auction participants who have colluded to hold down bid prices, depriving banks or underwater homeowners who should have received the money.
In some cases, the participants would have only one person bid (a low price). Then the group would hold a “private” auction among themselves for the properties. Money paid above the open auction price would be split among the participants. In other cases, they joined together to enter only one low bid, then split the profits when the property was resold.
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