Ignorance of the law, or even skirting the rules because that’s how it’s always been done can get you every time. Recently, the SunHearld (Biloxi, Mississippi) reported that several real estate investors in Gulfport were charged by the U.S. Attorney’s Office for allegedly holding secret meetings to rig bids and allegedly deciding ahead of time who was going to bid on a particular house and how much the others might be paid for not bidding. The investors claimed it was all happening out in the open and that the attorneys representing the mortgage companies knew what was going on. Either way, this kind of activity steps up to the legal line at best and crosses it at worst. Do your due-diligence, be careful, and know the law when participating in foreclosure auctions.
But Tolar said all this happened right out in the open. Attorneys representing mortgage companies at the auctions knew what was going on, he said, and would even ask, “Y’all figured out who’s getting this one today?”