I have been attending and purchasing foreclosures at auction in orange county california over the last two years. I experienced a situation that seems unethical and I wanted to get your feedback.
The following situations all happened at the same auction with the same auctioneer:
The auctioneer was requested by a regular investor to “auction this property first” as he handed the auctioneer a piece of paper. There was some whispering back and forth with the investor and auctioneer. The auctioneer then auctioned the property and that investor won.
The auctioneer was asked by another individual to “hold this property till the end” as he handed the auctioneer a piece of paper. The auctioneer said, “okay.”
The auctioneer approached an investor and said, “I recognize you from last week, what property are you interested in?” She showed him a piece of paper and he said, “do you want me to auction that now?” She said, “no, hold it to the end.” He said, “okay.”
Additionally, the auctioneer required that everyone that was interested in bidding on properties had to show him their cashiers checks and tell him the total amount they had available. He wrote each persons name down and the total amount of money on a piece of paper.
I have been to many auctions and have never experienced situations like this before. This seems very unethical. Please let me know your thoughts.