To the chagrin of those who had been colluding to rig the outcome of foreclosure auctions in San Francisco, actual bidding is back in style on the courthouse steps.
Purchased for $532,000 in June of 2000, the single-family Central Sunset home at 1879 23rd Avenue was foreclosed upon and hit the courthouse steps yesterday with an opening bid of $386,409. As a plugged-in tipster notes, the property sold for $632,700.
The San Francisco Foreclosure Rigging Four [SocketSite]

3 thoughts on “Bidding Is Back In Style On San Francisco’s Courthouse Steps”
  1. And Zillow thinks the house is worth $716K. Seems like a reasonable discount for the uncertainty and baloney of a foreclosure sale.
    My favorite part about the nano-politics of the SF foreclosure sale market is that courthouse steps protesters are so quick to paint investors as bad guys. This has the same exact effect as a ring of collusion – to limit the number of participants in the auction and artificially depress prices.
    If anyone was really concerned about keeping prices “fair” (read high) for defaulted borrowers and banks, they would take a look at the Occupy the Auctions protesters.
    But, we’re in San Francisco, so people who buy houses at trustee sales must be bad, banks who lent money and helped people buy homes must be bad, and people who don’t pay their debts must be victims.
    Yeah, the Occupy thing is a bit of a personal beef of mine.
    And yes, buyers who collude should be held accountable.
    And yes, this is a digression.

  2. Well put soccermom and I think the digression is not too far off course. Because I think reality is even further off course. An efficient foreclosure market would be great but the current market structure only gives a ridiculously small amount of transparency which only an even smaller number of people can interpret. Ask anyone if they think buying on the steps is a good idea. 99.99% will tell you to avoid foreclosure sales like the bubonic plague. WHY? Because you need to know about title, “unexpected” issues with condition, missing toilets or whatever. Plus you have to understand local markets. Thank God there are realtors who can help me navigate this whole mess. My point is – the market is so cloudy to begin with, how can we really talk about enforcing the Sherman act? I’m sure the guys involved here feel like most of us feel driving 75 on the freeway. Hey it’s not that big a deal and there are people driving even faster than me! I’m a victim!!

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