[jkarolyi]

The starting bid is usually the amount owed on the first mortgage, and has nothing to do with actual value. I've rarely seen a trustee list a property on a courthouse steps auction below the amount owed, but it does happen.

The trick is to find a place that has a low first mortgage (bought before the boom) but has a large second on it. You can buy it on the courthouse steps for the first mortgage amount.

And yes, be sure you are bidding on the first mortgage. This isn't as easy to determine as you might think.