But to also just load it up with whatever garbage off the street with a pulse so you can inflate your properties value to dump the flaming mess on an unsuspecting buyer. 

And when I consider liquidity, the possibility of a refi, the possibility of high inflation, the possibility PMI will remain tax deductible, & such, it seems the 3.5% option is slightly superior. 

They lose money when inflation rises and they have to pay more on savings to get deposits into the bank.

There are historical rents in place on some of those where in exchange for excess TI paid by the developer the tenant started with inflated rents for the market and hoped to make it up over time with increasing sales.

A lot of commercial leases are NNN leases, which provide a hedge against expense inflation. 

Lynn you are making a common mistake between a FORECLOSURE sale and an auction.You can auction a property for any reason and any type of property.There are many auction houses across the U.S.Banks are just like any other seller who goes through selling process.In the beginning they get an inflated appraisal when they foreclose and feel hopeful.The after multiple price drops they get desperate and here and auction will get them an inflated price.The auction company talks them into a low started bid to get action but tells the bank they can always decline the highest bid if it's not over the banks set reserve.It works just like Ebay almost in that in many cases an item will not meet it's reserve price.In that case the seller can accept the lower bid,counter the bid,or withdraw the property or item all together.Each auction house works differently.If an auction says no reserve that means that whatever it sells for will be the price.In many cases finding a deal at an auction is not likely.People get emotional and ego's make them overpay.An auction is just another avenue for a desperate bank to try and sell a property.Foreclosure at the courthouse steps is when the bank has not foreclosed yet and they can set a bid to see if anyone bites or they will take back.The auction companies are very specific on earnest money and the agent is not to blame for their policy.If the bank does not accept your bid and you are the winner you will not lose earnest money.If you back out after acceptance you could lose it.I remember chuckling every time I saw in REO magazine the owner of an Auction company touting winning bids at auctions.What they didn't say is many of those winning bids never make it to closing and the banks re-list with the broker/agent again as an REO or just activate the listing again.

Nobody wants to see another over inflated bubble, just waiting to burst again, but come on.... these prices gotta go up again, and they've already started to.

My current provider seems to just keep raising their rates WAY FASTER Than Inflation! 

What I found especially alarming was that the properties Pinnacle and Gene O'Neal were purchasing were just being sold back to another Pinnicle entity under Gene O'Neal's control at inflated prices.

If these guys (hedge funds) are buying at inflated prices, at the "right time", will they sell at inflated prices or dump a hoard of properties as fast as they can at reduced prices?