Investor · Pasco, WA · Member since 2014 · 30 posts · 7 votes
So I have read a few threads on this subject, auction.com, and I haven't quite come to fully trust the site. However, some say that there is still deals to be had there and you just need to be patient, and diligent. So my question to those who have used them (and any other auction) is what is on your checklist of things to examine before bidding? Obviously doing a title search, and perhaps a drive by of the property, but what is the nitty-gritty that you are looking for? And where do you find that information?
Investor · San Diego, CA · Member since 2014 · 592 posts · 765 votes
11y
I have yet to use the site, but I am currently in escrow for a short sale with Nationstar as the lender. SOP for Nationstar is to put any short sale that goes under escrow up on Auction.com as an attempt to recoup as much of the loss on the short sale as possible and still having a safety net of original buyer's offer as a reserve on the auction. A lot of deals you see on the site may be a similar situation where there's a hidden reserve on the house.
Oceanside, CA · Member since 2014 · 1 post · 0 votes
11y
Originally posted by @Account Closed:
Sure seems like some of their properties keep getting recycled.. I mean how can they be auctioning the same foreclosure for years and years?
Perhaps thats how they have become so rich, by holding lots and lots of DEPOSITS with bids.
Auction.com doesn't keep the deposit if the property isn't won. Typically the properties are recycled because they don't meet the seller's reserve price. You would think the seller would modify the price after 1-2 unsuccessful auctions, but ultimately it's up to the seller to set their reserve.
Auction.com posted an article on some due diligence tips: https://www.auction.com/blog/due-diligence-10-steps-to-take-before-you-buy. Some customers have also reported a title search was incredibly helpful and they wouldn't proceed without that info. Good luck in your hunt!
Lender · Houston, TX · Member since 2013 · 154 posts · 28 votes
11y
Hi,
Auctin.com have different type of properties. The properties that come in for foreclosure and action and others that maybe the owner like to sell with the help of the site.
They will sell most of the foreclosure with the same old fashion trust action that is happening every first Tuesday of the month and you need to be present to bid on them, if they could not sell in on that they they will list in online.
One of the problems I saw before on the site is the fact that they will bid up the property on behalf of the seller.
I call them myself and try to see how this will work and they told me that they can bid on my behalf until the price I like will pass.
Rental Property Investor · Arlington, TX · Member since 2012 · 788 posts · 640 votes
11y
Don't believe everything you read. I have purchased several homes from them and I'm very pleased with their services. Keep in mind it is buyer beware and only you are responsible for due diligence. As far as the deposit is concerned if you are needing that back ASAP you should not be investing in real estate.
Rental Property Investor · Dallas · Member since 2012 · 107 posts · 69 votes
11y
I bought a house from them last year. It was a short sale with a first and second mortgage on the property. We went under contract on December 6, 2013 and closed on March 28, 2014. It took so long because the first and second were negotiating on how much the second would be paid, and we kept having to get the contract extended. I purchased the property for ~68k, put 30k into it, now it's worth about 120k and is currently rented at $1275 per month.
@Rocky V. Rocky, I have read you on many threads. Congrats on doing well with auction.com. We also are in process for a studio condo we got on there, the title stuff especially using their title company requires a bit of work, even if it is the best in the area, since title is the holy grail, we're just keeping that line of communication open good relations with the title company, we have some time before the EMD to make sure the title insurance will have coverage for liens on that liens exceptions list from auction.com
"
Most liens are removed after a foreclosure property sale, but certain liens may remain.Here are some examples:
Any lien recorded on title prior in time to the foreclosing mortgage.
First Mortgage (if the foreclosing mortgage is a second or third mortgage)
HOA or COA assessment liens (in certain states)
Mechanic’s Liens (in some states)
Government liens such as state and federal tax liens, city or county liens, US Government liens.
IRS liens (IRS may buy the property within 120 days after sale at the price paid at foreclosure sale)
Code Enforcement Liens, Environmental Liens, and Utility Liens
Child Support Liens"
There are a few folks that have gone through them time and time again.
Rental Property Investor · Los Angeles · Member since 2019 · 146 posts · 101 votes
6y
I have bought from them several times. Some best deals I have got were that way. Had to deal with difficult tenants but at the end of the day worked out well.
I would keep in mind that they charge 5% commission that they charge to buyer. Which is annoying but you just need to know to factor that in. I would just read fine print. I also think you maybe able to use your own title and escrow. That's something you may want to look into.