Yeah, I know, no American corporation would intentionally employ deceptive marketing tactics …

Actually Bugs, REDC in their disclaimers opening publish the fact that there is a reserve and that they can make multiple consecutive bids until that reserve is met.

As for bear disappointment, that comes from three factors:
1. a very large turn-out (should have been expected in hindsight)
2. multiple reports of fast and heavy bidding (since they’re laced with shills, that also is predictable)
3. indication from our own that went show the properties bidding up to 20% of last valued at price. These last value prices were insane and often not based on current market condition.

Once you shift your focus from how much the “buyers” paid to how much the banks made after expenses, it no longer looks so good. IOW, a little time to cool and your perspective shifts from “oh shoot, there’s a mob of buyers waiting to buy just below current prices” to without the hype of the auction, the banks are really going to need to slash REO prices to move them.

Overall, unlike the Bressi Ranch auction which was clearly a failure from the start with homes not making the reserve, this one appeared to make reserves on most. (thanks to the shills).