Penny auction (foreclosure)

A penny auction is a collective effort by a farmer’s neighbors to help the farmer keep the farm after it has been foreclosed. It was practiced during the Great Depression in the United States. The neighbors would gather in large numbers at the auction of the farm and bid very low prices on the farm and its contents while intimidating other bidders. In the end, the bank that owned the farm would get whatever was bid and the neighbors would return the farm and its contents to the farmer.[1]

See also

References

  1. ↑ Steve Wiegand, “Holding ‘penny’ auctions”, Lessons from the Great Depression for Dummies”