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Are there any paralells between real estate foreclosure auctions and rare coin auctions?
SanctionII
Posts: 11,737 ✭✭✭✭✭
I am very familiar with California real property foreclosure auctions. Lots of weird, greedy and slimey stuff happens at these auctions that defeats the purpose behind the Legislative statutory scheme that regulates these auctions.
I have also heard of weird, greedy and slimey stuff happening at coins auctions.
I assume that paralells exists, stemming from a desire of one or more persons to get a result that gives them a windfall to the detriment of another interested party in the auction transaction.
In real property foreclosure auctions, the property owner does not want to see the property sold. The sale is a forced sale. Properties are sold against the will of the owner at times for a price far less than the property is worth. The foreclosure and auction process in this case is designed to give the property owner time to avoid a loss of the property by giving time to bring the loan current or pay it off through a sale or refi. If the property must be sold, the public nature of the auction is designed to attract multiple bidders who compete to buy the property. This competition results in higher prices being paid and a high chance that owner will receive at least a portion of his/her equity. Bidders many times join together to eliminate competitive bidding [through a variety of methods], with the result being that the property is sold out from under the owner at artificially low prices. The owner of the property get a raw deal.
In the coin arena, auctions (for the most part) are not forced sales. They are voluntary sales. The owner wants to sell the coin and wants to sell it for the highest price. Persons are invited to bid competitively for the coin, but bidders do not want to overpay for the coin. The seller of course wants multiple, ever increasing bids. Shill bidding and other methods are used to inflate the price beyond what is reasonable, resulting in the buyer getting a coin for overinflated prices.
Both types of auctions are different from each other, yet in both types events can take place that can render the outcomes unfair.
I have also heard of weird, greedy and slimey stuff happening at coins auctions.
I assume that paralells exists, stemming from a desire of one or more persons to get a result that gives them a windfall to the detriment of another interested party in the auction transaction.
In real property foreclosure auctions, the property owner does not want to see the property sold. The sale is a forced sale. Properties are sold against the will of the owner at times for a price far less than the property is worth. The foreclosure and auction process in this case is designed to give the property owner time to avoid a loss of the property by giving time to bring the loan current or pay it off through a sale or refi. If the property must be sold, the public nature of the auction is designed to attract multiple bidders who compete to buy the property. This competition results in higher prices being paid and a high chance that owner will receive at least a portion of his/her equity. Bidders many times join together to eliminate competitive bidding [through a variety of methods], with the result being that the property is sold out from under the owner at artificially low prices. The owner of the property get a raw deal.
In the coin arena, auctions (for the most part) are not forced sales. They are voluntary sales. The owner wants to sell the coin and wants to sell it for the highest price. Persons are invited to bid competitively for the coin, but bidders do not want to overpay for the coin. The seller of course wants multiple, ever increasing bids. Shill bidding and other methods are used to inflate the price beyond what is reasonable, resulting in the buyer getting a coin for overinflated prices.
Both types of auctions are different from each other, yet in both types events can take place that can render the outcomes unfair.
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