TG I know of someone on this board who recently purchased a home at auction. The home that I fell out of escrow at 4 weeks ago in Scripps Ranch was also a home that was purchased at Trustee Sale by an investor. A home that is in escrow on New Rochelle in 4S was also purchased at trustee sale by investors.
No admission at all. While the reality of the situation is indeed many/most of the homes at trustee sale do go back to the lender it is indeed a fallacy to think that all of them do. If you think about it, if the lender does a thorough analysis of the particular home at the auction and finds the market has depreciated much more then a lowball offer from an investor at auction, it makes much more sense for the lender to take his lumps at the auction then to foreclose and risk an even greater loss when the property goes REO.
