Freddie Mac/HomeSteps - Auction.com

[Julie Kern]

I received a notification from auction.com about a property in my area that is currently up for auction (ending 11/10).  I'm not planning to bid on it because we are novice investors. Just trying to understand the process for future reference and learn as much as I can.

The property failed to sell on the courthouse steps in Dec. 2013, and is now listed on HomeSteps.com for $159K, which seems to be right around market value.

The starting bid on auction.com is $30K, which is ridiculously low for the home and the location (nice neighborhood, great school district and area, and just from the outside and peeking in the windows, the home appears to be in good shape).  There is a reserve.  Current bid is $60K.

My questions are:

• Why is the starting bid so low?  Is it just to entice buyers to start the bidding process in hopes that they'll get caught up in a bidding war/frenzy?  Is it typical for bids to start so far below market value? 
• Considering it's a HomeSteps property, are liens still a potential issue just as they would be in a courthouse/trustee auction?

Any information would be greatly appreciated!

[Nicholas Miller]

you should get a clear title..  auction.com always starts low and final bids (unless they pass the reserve) are subject to bank approval.