How To Get Houses Cheap At Auction
Trustee Foreclosure Auctions and Drop Bids
When a lender posts a Notice of Sale amount (often referred to as the minimum bid) and then drops the amount hours or even minutes before the opening of the auction, this process is known as a drop bid.
Lenders are however encouraged to post the Notice of Sale amounts for foreclosure properties that will be sold at the trustee sale at least 24 hours prior to the start of the sale.
Drop-bid purchases enable the few who know about the deals to buy homes and quickly resell them for hefty profits… Buyers aware of the “drop bids” scoop up the houses before other bidders know about the price drops.”
No one seems to be sure why banks would choose to lower the minimum bid without adequate notice. The uncertainties surrounding properties coming to auction may have more to do with last minute price…
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The Justin Lindsey Report 