Possible Integrity Question Arise In Connection With Foreclosure Auction

In Boston, Massachusetts, The Boston Globe reports:

• About a quarter of the winning bidders at a November auction of 300 Massachusetts home foreclosures have not yet been able to claim their properties, even as the auction company prepares for a new sale next Saturday. Frustrated bidders say they have spent thousands of dollars on deposits, fees, and financing only to find themselves mired in delays and legal complications that raise questions about the integrity of the auction.

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• In one instance, three friends made the winning bid of $130,000 on a house in Lee. The mortgage company delayed the closing, then sent a letter in February offering to return the deposit. Before the friends responded, the company put the house back on the market for $179,000, then quickly agreed to sell it to someone else.

For more, see Many high bidders still waiting for homes.