I for one don't understand how the states attorney general(s) would allow this practice to continue. If you read thru these post you should get an understanding that if you are bidding on a property via their web site, you most likely are bidding against yourself.
Auction con should be the proper name for that site.
If you start bidding on a property that has a reserve, might as well pay full price via a broker, wait until it goes back to the lender. Auction con will counter bid any bid including their own counter bids to jack up the property to the reserve. So you want to be screwed more? If it is owner occupied, add another 10k plus whatever damages which could be considerable, and if that prior owner had outstanding debts
There may be lien rights to follow against that property even thou it was foreclosed.
You are in a no win game with auction con. I have seen them relist a property maybe 9 times, i think part of it may be the lender trying to get the insurance from the loan. Only if HUD knew what games were being played by these lenders to gain more monies from the insurance. Or is it freddymac don't know.
Again as stated by others here, you have no recourse against auction con, take a look at their closing docs. Best advise stay away, report to your local attorney general..