Rational Bidder?

[Tom Benette]

The first 2 batches of Mohave county has ended. I won nothing. I noticed that an institution bid a lot of liens down to 2%. I don't get it and hope people here to give me some clarity.

These liens are in the amount of $1,500. The fees will be $25.

1. 1. In the best case, after the fees the return is 0.3% for the first year.
2. 2. For the second year, the lien is very likely to be redeemed.
3. 3. If there is any redemption earlier than one year, investor loses money.
4. 4.Even if there is subtax offered, by that time one can probably get a CD for 2%. [in Mohave the subtax is offered at the same rate]

So it is not making any sense to me what's really in it? The chance to foreclose?

Thanks.