Collusion at Auctions

9 Replies

I thought colluding at an auction was illegal? I see people colluding at Trustee sales all the time. They bid, then when two of them have run out of money they team up to continue bidding. Is that collusion? I also see them say things like "if you let me get this one, I'll let you get the next one". I'm pretty sure that is definitely collusion.

They do this brazenly in front of the Trustees. But the Trustees are not law enforcement and so they don't care. I'd expect that they have a fiduciary responsibility to get the best price and letting bidders collude is not conducive to that responsibility though.

Well now some of the Trustee sale clic are coming over to the Tax Sales and doing the same thing. Right in front of the Constable Deputies! They don't seem to care either. WTF?

Am I wrong about this. Is it totally legit?

“Teaming up” to buy together....no.

Having an agreement to “I won’t bid on this one, you don’t bid on the next one”...yes....but that would benefit you as another bidder

You comment didn't provide a question. You basically just said that they have more resources and are leveraging those in an effort to gain an even stronger position......that is exactly how capitalism is supposed to work. 

I have no idea if what they are doing is legit or not, but just because something is against the rules doesn't mean it's not going to happen.  My advice would be to stop focusing on how you think the game should be played (the rules) and start competing in the game that's actually being played. 

Life aint fair yo ;) 

The only job of the Trustee is to get the best price for their client who is the Lien holder foreclosing on the property and then subsequently complete the transaction by collecting funds and filing the foreclosure deed

The Trustee has zero responsibility to make sure bidders aren't colluding(other than verifying funds) or ensuring the title is clear 

Originally posted by @Robert Steele :

@Alexander Felice @Greg H. @Maugno M. @Reuben Gathright

Collusion at foreclosure auctions is illegal so the last laugh is on you.

PROSECUTING COLLUSION AND FRAUD AT REAL ESTATE FORECLOSURE AUCTIONS

As I stated before, rules don't matter. The only thing that matters is what actually happens in the world. 

Unless you want to tattle on the rule breakers, you have to play the game better. Not sure what your angle with this post is other than to win some imaginary internet points, but if your goal is to win properties at the auction then proving us wrong on a technicality isn't helping your cause. 

The article you posted says FIFTEEN (15) individuals have been prosecuted in the year prior, the article itself is ~3 years old. This tells me that a LOT of people are, and will continue to, get away with this behavior. So it's apparent that the rules are not going to stop them, what else are you going to do to get competitive? 

 

But back to your point how is teaming up to get a higher purse per se to generate 'more funds to bid the price higher' anywhere near the act of collusion/conspiracy listed by the DOJ to keep bids low & thus cheat the respective financial institutions/home owners from higher bid prices???????

@Robert Steele

There are several people on this thread trying to help.  Personally, I have provided direction to you on other threads as well.  So I am curious as to why you would go with the "last laugh is on you" comment?

Back to the thread.  My comment regarding the Trustee was that they are responsible for obtaining the best price for the asset.  Your original "collusion" was regarding the driving up of prices.  The article you referenced was referring to the driving DOWN of prices to which we all agree is wrong.  This type of action used to happen often years ago with non-judicial foreclosures.  I used to see what I called the "drive by foreclosure".  The Trustee would drive by the courthouse and place a minimum bid for the buyer and never actually allow public bidding.