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Posted By: mapabr

My first response is NO, there shouldn't be any inference of wrongdoing and that the transaction is at arms-length. But if it's in the open and the purchase is really finalized (as opposed to a shill-bid to protect the asset) I don't see why not? When banks hold forclosure auctions, an auctioneer actually stands on the property or at a designated location and holds a real live auction except the bank has the right to bid-in at the end to save their interest. That doesn't seem fair but what it really amounts to is a "reserve" auction.