Upset Bidding At Courthouse
I am new, eager investor who has stumbled across a nice foreclosure at the courthouse. I have yet to make my first deal and I would like to upset the current bid on the property. The names, addresses and phone numbers are available of those who have made previous bids (there are currently two).
Has anyone ever contacted people you have upset to try to coerce them in to letting you have the deal? Throw them a bone and they'll throw you one?
I am curious to see if this is common practice. If anything, I may make a good contact for the future while I get laughed at. Thanks 
HI.. KIX1972
Being new, I'm sure to come across new terms. After checking the encylopedia for "upset the bid" and not finding a entry , I will ask... I have some what of an idea..so if you could ..explain this. I'M here to learn.
Thanks, mcldavid
I'm curious as to the procedure too. For example, if the lien on a property is $400,000, and the plantiff bids $25,000. Then what does that mean??
Did the plantiff just win the property for only $25,000??
Quote:
On 2004-01-08 01:05, kix1972 wrote:
I am new, eager investor who has stumbled across a nice foreclosure at the courthouse. I have yet to make my first deal and I would like to upset the current bid on the property. The names, addresses and phone numbers are available of those who have made previous bids (there are currently two).
Has anyone ever contacted people you have upset to try to coerce them in to letting you have the deal? Throw them a bone and they'll throw you one?
I am curious to see if this is common practice. If anything, I may make a good contact for the future while I get laughed at. Thanks <IMG SRC="images/forum/smilies/icon_smile.gif">
Kix,
From the sound of it, what you have in mind is very illegal. Before you attemp to pull off this Upset bidding, I would consult with someone about the legalities and also, how much will bail be if you get caught doing something like that. You might want to search the articles here on the site and in the archives to get a better picture of what you are trying to do befroe it getts you in trouble. Just my 2 cents, I wish you luck.
I just want to clarify for those who think I am doing something illegal : upset bidding is common practice in this area, especially when properties are auctioned through the courthouse. Correct me if I am wrong but in my state (NC) the upset bid is always $750 or 5% of the total amount. Your bid is good for 10 days until someone "upsets" you thus raising the current cost of the property that is being auctioned.
Here in SC, the county that conducts our foreclosure sales handles the upset bid process a little differently.
After the foreclosure sale, and only if the plaintiff has requested a 30-day deficiency, an upset bid sale is held 30 days after the foreclosure sale. The plaintiff's winning bid at the foreclosure sale is the opening bid at the upset bid sale.
All parties interested in participating in the upset bid sale come to the courthouse on the sale day at the appointed time, and another voice auction is held. If you are the only bidder present, you might get the property in an upset bid for only $1 more than the plaintiff's winning bid at the first sale.
Why don't you define the term for us, because you seem to be the only one familiar with it.
The only reference to 'upset' that I am aware of is the 'upset bid or upset price' which refers to the opening bid set by the lender. This is the amount that the lender has set as the starting bid, if you want the property you have to bid more than the 'upset bid or upset price'.
There seems to be a variety of minimum amounts you must increase your bid by in order for it to qualify as a legitimate bid, in some places it is $1 and in others it is $50.
It almost sounds to me like you are saying in your area you have to increase your bid by a minimum of $750 or 5% of the starting bid or "upset bid'? And you are referring to you new bid as an 'upset bid'.
If that is the case, that is the biggest by far amount I have ever heard of.
Further - what I believe you were asking in your original post was simply contacting the other bidders and working out a deal where you get this one, I get the next one.
Technically this never happens, but of course in reality what happens behind closed doors of course is anybodies guess. I doubt you will have too much success in the beginning contacting others out of the blue and trying this, but I have no doubt that the players in your market are doing this all the time, because they know each other and have relationships established.
Once you become a player in your market I'm sure you will experience some degree of what you are asking about.
There's nothing wrong with the bidding procedure in your state which you term "upset bidding". It's just a round-robin process.
But, there is definitely sojmething wrong with what you propose. It's called "bid rigging". That's a felony. You make and raise your bid independently. When you enter into collusion with other bidders (you lay off this one and I'lll lay off the next one you want) etc. etc. that's illegal
There's no question that it's done. Just don't do it unless you look good in an orange jumpsuit on your way to Club Fed.
Quote:
On 2004-01-08 11:06, kix1972 wrote:
I just want to clarify for those who think I am doing something illegal : upset bidding is common practice in this area, especially when properties are auctioned through the courthouse. Correct me if I am wrong but in my state (NC) the upset bid is always $750 or 5% of the total amount. Your bid is good for 10 days until someone "upsets" you thus raising the current cost of the property that is being auctioned. <IMG SRC="images/forum/smilies/icon_wink.gif">
Interesting..I am curious now...I never heard of it, but I also know that every county is different. I need to do some research on it....Does this go on in any of the other surrounding counties?
The current bid is being "upset" by a new bid which equals 5%. I am guessing they want 5% so that only serious bidders apply. Thanks for all the posts.