Bank Write-downs at auction

[John M.]

Around here, banks have finally started lowering their minimum bids at auction to below the judgment amount in an effort to avoid getting some of these houses back as REO's. But for the most part, they still bid up to the full amount due and then deal with it as an REO.

However, there are a couple of investors that consistently know which properties the bank is going to write-down before the auction. I'm wondering how they are getting this information. My first thought is that they have an inside contact at the lender/bank, but the lender is different for most of the properties. Also, the attorneys handling the foreclosure are different for most of them. The agent handling the bids for the out-of-town attnys doesn't normally get his bid instructions until the morning of the auction (if he's being honest with me -- and I think he is).

Does anybody have any ideas about how to get this info?? If they are only getting it the morning of the auction, then I'm not concerned, but if they are getting it a day or more ahead of time (and it appears that they are), then it puts me at a distinct disadvantage.