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Updated over 7 years ago on . Most recent reply

User Stats

10
Posts
1
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Arseni Zaitsev
  • Real Estate Professional
  • Atlanta, GA
1
Votes |
10
Posts

Sketchy Courthouse Foreclosure Sale.

Arseni Zaitsev
  • Real Estate Professional
  • Atlanta, GA
Posted

Bit long story, but thought i'd share. I'm curious about oversight, ethics, procedure, etc. that govern courthouse property foreclosure auction by counties. I have bought a few previously and today this happened: 

There was a property offered today that I figured would be very popular if it made it to the steps. While doing my due diligence last week, I spoke briefly with the representing lawyer. He was friendly, but wouldn't give out the opening bid. I didn't argue but found this a bit strange as typically some number is given or "it hasn't been determined, you can check back later" is the answer. The lawyer also seemed to go out of his way to mention he was supposed to visit other auctions and did not know his arrival time at Fulton. He did welcome a morning call the day of sale.

Today, group of us interested waited all day and politely tried to reach this lawyer to see when he may show.

From 2pm-4pm, about a dozen bidders lingered waiting, cautiously watching potential auctioneers . At 3:50pm, a casually dressed gentleman showed up on the steps, played with his phone for a few minutes and then walked into a corner as "another" guy showed. Few of us waiting rushed over to inquire if either were going to be reading properties. To my surprise, one of the guys was already taking bids and barely annunciated the address when prompted by the newcomers. I don't believe he'd even read the deed as seemingly customary. Auction proceeded with 4 interested bidding parties, during which lawyer would say repeatedly "going once, going twice" before a bidder would offer a higher price.

Reaching 300k, the auction slowed with only myself and a lady counter bidding at small increments. When the bid climbed to 314k, the "other" guy offered 315k. The lawyer immediately said going "once, sold" and walked off with winning party to collect "information." There was no opportunity for another bidder to offer a better price. Lawyer and winning bidder walked off and didn't seem to exchange much info before departing. My experience is that handing over the funds takes time, even with regular bigger companies. One lady claimed she had heard the lawyer tell the guy "don't worry, I already have it" as the guy handed something over. Afterward, when asked, the lawyer said he was very busy and was happy with the process before walking away.

There are least 4 bidders and maybe 8 witnesses that found the whole interaction and conclusion to be strange. We all noted that the winning party had not been present with us and seemed to show only to meet this particular lawyer.

Summary: a group of bidders suspicious that auction lawyer may have arranged a deal with buyer ahead of the auction

Is there any way to see if this was a legit sale? 

What if the recorded deed shows a lower price then we witnessed as sale? 

How does one file a complaint and to whom? Seems our local sheriff department only handles tax foreclosures. I was told to speak with court services, but even they seemed lost. 

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