I attended the Super Tuesday auction in Atlanta this week. The video below shows four foreclosure auctions happening simultaneously. The “crier” comes out, states the property address, reads a three-minute disclaimer, spends one minute completing the auction and then five minutes collecting the cashier’s checks. The tents you see are primarily from four major institutional investors who provide relief from the 88 degree heat for their staff. Each team probably had over $1 million in cashier’s checks with them.
Anyone who actually needs a mortgage has no chance of winning the auction. Is this the right way for banks to maximize value? This process occurs at county courthouses all over the US and has so for decades. There has to be a better way.