Foreclosure Auctions - Substitute Trustee Eligible to Bid?

[Account Closed]

Hi BP Community—

In Virginia, when a Substitute Trustee is assigned and that firm brings a property to auction, I'm wondering if that firm - or their affiliates - can bid on the property at the courthouse steps. Or, possibly an employee of that entity acting in their own interests (or, bidding as a personal investment). I realize laws are different per state with foreclosures, so I welcome feedback from people in or out of Virginia. 

I can't imagine there would be conflict of interest, right? The lender just wants their money back - who cares if the buyer is Joe Schmo on the courthouse steps or the firm assigned as the Substitute Trustee.

In summary, my questions:

• Are there any laws/code that prohibits a Substitute Trustee from purchasing the property themselves before or during the auction? 
• Why wouldn't these firms want to purchase a property that has promise to be a good investment (i.e., long-term rental, flip, etc.)?

Thanks in advance!

[Tom Gimer]

Substitute trustee owes fiduciary duties (perfect fairness and impartiality, in VA) to both lender and borrower. Whether those duties have been breached in a given scenario depend upon the facts.

To me this sounds like someone betting on a game they are playing in.