Buying Homes at Auction

Hi its David today. This week i went to local real estate auction put on by Hudson and Marshall auctions . it was an interesting experience and I went with the intent of networking with other investors in my market that might not attend either of our two local real estate investor groups.
My wife Misty pulled comps for me on every house that was in the auction and i drove around and looked at some of them pre-auction. when homes go to auction like this they are generally bank owned from foreclosures and have already spent at least 6 months being listed by an agent without selling. Well i won 3 auctions but it turns out this isnt an absolute auction so the sale was still subject to approval by the banks that owned the properties. So what do they do after the sale? They come back to me with counter offers well above my winning bid prices typically 7,000-12,000 above. An example was a brick duplex i bid $13,000 and was the winning bidder. It need quite a bit of work but i believe if i clean it up then i can wholesale it to another investor. Well the bank countered at $20,000 and i refused to go up. I think after cleaning it out i could wholesale it for $20k to another investor or i might keep it as it could rent for $900 per month with both sides rented but it is in a tough area.

What was really neat about the whole event though was i was interview by CNN about buying houses at a real estate auction and they will be showing a piece on foreclosures between Christmas and New Years.