You have to do your homework here. $69K on a 3,000 square foot house sounds like a second mortgage. When you buy a second mortgage at an auction, you're responsible for paying the first. And, if you think this is a great deal, so will others. The only people that'll know the real story are the investors that show up to these auctions everyday with $100,000's of cashiers checks, and those people have full-time office people researching these properties. I know because I used to bid with them. I was at an auction once when a woman came to say she bought the wrong property. She thought she was buying a house and lot, and realized she bought the vacant lot next door - because she didn't know what she was doing.
No one is going to buy a 3,000 square foot house for $70K, even if it was gutted. The house will sell for under market value for sure, less the amount of the first loan. If there is no first loan, the biddng will jump up very quickly, and not by the $100's.