I go to the auction down on the steps of the courthouse all the time. It is not unusual for the bank's actual maximum bid on the day of the auction to be lower that their bid published on the master's website. While it is not always clear what factors affect their decision to lower their maximum bid, but a quick guess would be the condition of the home, the market conditions in the property's neighborhood, or the experience of the decision maker handling the file for the bank.
But needless to say, I've seen some real steals on homes at the courthouse. I have done a bit of research into the property that you are interested in. I have found some interesting information. Please call me if you are interested in what I know about the property and how I can help you. My contact information is in my Trulia profile.
Best Regards, Dan Mengedoht