Auction - Max Bid - What Gives?

[Mary Winleigh]

I went to a foreclosure auction yesterday which was a trustee's sale on the courthouse steps in California. A condo I was interested in came up for auction with an opening bid from the lender at $181,000. I bid $1 over and was immediately told by the auctioneer that then the price would now go to the lender's maximum bid of $256,000. This amount is at least $50,000 over the value the property. What is this about? Why would the lender have a maximum bid?
In checking the results for yesterday, the trustee shows the that the property reverted to the lender at a price of $181,000.
Does anyone have an idea of what is going on here?
Thanks for your help.