Banks are setting bid prices below the principal balance at auction

I visited a foreclosure auction on April 24, 2009 in Bellevue and was able to interview three investors regarding the rumors I was hearing about banks setting a below payoff price as their opening bid.  Turns out the rumors are true.  Follow the full stories here:

Why are Banks Setting the Opening Auction Bid Below the Principal Balance?
Link to my youtube channel with all 9 scenes of the foreclosure auction
National coverage on Calculated Risk