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re: Is shill bidding illegal in Louisiana?
Posted on 7/16/16 at 10:28 pm to OweO
Posted on 7/16/16 at 10:28 pm to OweO
It would be like you bidding on your ebay auction, from another account, if it was no reserve and was about to sell for half of what you thought it was worth.
Value of item (perceived by you) - costs of buying item = more than your paying to buy your own item.
Value of item (perceived by you) - costs of buying item = more than your paying to buy your own item.
This post was edited on 7/16/16 at 10:35 pm
1
Posted on 7/16/16 at 10:28 pm to tgrbaitn08
quote:
and you know you are bidding against banks going in. You
Not necessarily.
If you go to Sheriff sale, you absolutely know you are bidding against the bank.
Posted on 7/16/16 at 10:30 pm to tgrbaitn08
quote:
It's usually people that really aren't worried about money in the first place.
Not the ones I see and that would contradict them buying an item back because they think it was selling for too cheap.
Posted on 7/16/16 at 10:31 pm to stout
Shill bidding is fraud yet I see it everyday.
Posted on 7/16/16 at 10:31 pm to stout
quote:
If you go to Sheriff sale, you absolutely know you are bidding against the bank.
You're right, I wasn't referring to sherrifs sale.
Honestly I don't know how it works with sherrifs sales. My experience is just with regular auctions.
Posted on 7/16/16 at 10:32 pm to stout
quote:
Not the ones I see and that would contradict them buying an item back because they think it was selling for too cheap.
Like I said, they are testing the market. If they can't get what they want then they will just sit on it.
Posted on 7/16/16 at 10:33 pm to stout
I know it's not allowed on eBay.
Posted on 7/16/16 at 10:33 pm to stout
quote:
Banks aren't allowed to profit off of an REO. Anything above the writ amount goes to the former owner. That never happens though because "fees" eat up any profit.
And what happens if 2/3 of the appraisal price is much less than the writ amount? Or if it didn't sell at the first auction?
Deficiency judgments don't exist for shite and giggles.
Posted on 7/16/16 at 10:34 pm to stout
I don't see why is would or should be. Shill bidding amounts to an owner paying the auctioneering company a fee for their service while ensuring the owner sells his property at the desired price
Posted on 7/16/16 at 10:37 pm to tgrbaitn08
quote:
Like I said, they are testing the market. If they can't get what they want then they will just sit on it.
I saw one guy take a box truck he bought back from himself and drive it directly to a consignment lot owned by another guy I know. He has been desperately trying to get rid of it but he is seriously letting like $2K get in the way of dumping it.
I get you see people testing the market on higher priced items but I don't see it that way on the lower priced items where they are letting a few thousand dollars hold them up.
I bet $100 it will be at the next upcoming auction too. It's been on the consignment lot for 5 months. He has lost more than that $2K in time and money.
Posted on 7/16/16 at 10:38 pm to ManBearTiger
Because nobody would buy from auctions if there wasn't some type of rule against it.
But, like a previous poster stated, it happens at every auction. We used to have signals at Manheim auctions for a buddy across the lane to bump bids. If it didn't go high enough, we just wouldn't sell it.
But, like a previous poster stated, it happens at every auction. We used to have signals at Manheim auctions for a buddy across the lane to bump bids. If it didn't go high enough, we just wouldn't sell it.
Posted on 7/16/16 at 10:38 pm to TSLG
quote:
It would be like you bidding on your ebay auction, from another account, if it was no reserve and was about to sell for half of what you thought it was worth.
Value of item (perceived by you) - costs of buying item = more than your paying to buy your own item.
So then that items becomes worth even more to that person since they spent a certain amount to buy it back. Chances are, if they didn't get a certain amount for it the first time, it will not go for much more again..
Posted on 7/16/16 at 10:40 pm to TSLG
quote:
And what happens if 2/3 of the appraisal price is much less than the writ amount? Or if it didn't sell at the first auction?
The banks still convey it to HUD, FHA, or whoever insured it and the loss is billed to the tax payers. I work in the foreclosure industry FWIW so I deal with it this exact scenario.
quote:
Deficiency judgments don't exist for shite and giggles.
I have never seen them fully enforced in all of the years I have been involved in RE.
This post was edited on 7/16/16 at 10:41 pm
Posted on 7/16/16 at 10:40 pm to OweO
That is the risk they are taking, and that is what stout is calling a dumb decision on the part of a buyer.
However, the seller is bumping it with the hope that a legitimate buyer will keep bidding.
However, the seller is bumping it with the hope that a legitimate buyer will keep bidding.
Posted on 7/16/16 at 10:42 pm to stout
quote:
I get you see people testing the market on higher priced items but I don't see it that way on the lower priced items where they are letting a few thousand dollars hold them up.
Yeah I'm talking about $200k-$4mm pieces of equipment.
I see what you're saying on lower priced items. That makes no sense.
Posted on 7/16/16 at 10:47 pm to TSLG
quote:
That is the risk they are taking, and that is what stout is calling a dumb decision on the part of a buyer.
However, the seller is bumping it with the hope that a legitimate buyer will keep bidding.
It sounds like people just get upset because they were hoping to get something for a really cheap price, but the owner, like everyone else has a price they are willing to pay to get it back. In theory its almost as if the item wasn't even put up for auction except the owner has to pay for an item he/she already owned and the people running the auction makes money off of it.
Posted on 7/16/16 at 10:51 pm to OweO
quote:
It sounds like people just get upset because they were hoping to get something for a really cheap price
It's more than that. They have preview days so I go through what I plan on bidding on and rank them. I'll pass on say my 3rd option if my number one option is in line after it only to have the seller bid against me. Reserves would prevent this and make me planning my "strategy" easier. It's a waste of time as it stands.
Posted on 7/16/16 at 10:52 pm to OweO
quote:
It sounds like people just get upset because they were hoping to get something for a really cheap price, but the owner, like everyone else has a price they are willing to pay to get it back. In theory its almost as if the item wasn't even put up for auction except the owner has to pay for an item he/she already owned and the people running the auction makes money off of it.
This was my thought as well. I was refraining, because stout had already had his feelings hurt by somebody being mean to him earlier in the thread.
Posted on 7/16/16 at 10:57 pm to stout
quote:
It's more than that. They have preview days so I go through what I plan on bidding on and rank them. I'll pass on say my 3rd option if my number one option is in line after it only to have the seller bid against me. Reserves would prevent this and make me planning my "strategy" easier. It's a waste of time as it stands.
Was the seller trying to sell this piece of equipment before the auction? If so do you know what he was asking?
Posted on 7/16/16 at 11:00 pm to TSLG
No hurt feelings here and it's not all about saving money if you would read my post above you. I've bought plenty at their past 4 auctions but I have missed out on other items hoping for the better one only to bid against the owner.
I passed on two good trucks and a nice utv at the last one I'm still upset about.
I passed on two good trucks and a nice utv at the last one I'm still upset about.
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