I was wasting time surfing the web today, and I encountered this story about a Federal Marshal's Seized Property Auction in Phoenix, Arizona.
It occurred to me that these auctions come up all the time, and there are likely a reasonable sprinkling of Corvettes in them - and not just Federal Marshals, but County Sheriffs and State Troopers also hold similar auctions. Someone bought a nice 1998 C5 convertible at this one for $7,000 - quite a deal! Of course, the article doesn't say what kind of condition the '98 'Vette was in at purchase time, so you definitely want to go early and check out any potential deals. Unlike the high-dollar collector car auctions, you won't find any NCRS Top Flight or Bloomington Gold certifications on these cars.
I guess the only thing I'd worry about if I bought a seized Corvette at auction would be if the former owner saw me on the road with it later and recognized it - which is a good argument for planning a vacation around out-of-state auctions.