Hubzu

37 Replies

I read an older discussion on the website Hubzu and having recently been involved in a sale with them, I felt an update was needed. Hubzu is an auction website for bank foreclosed properties. During the transaction I was involved in, I found that the info listed in the MLS to be inaccurate, and the broker non-responsive. The process is a maze designed to maximize the sale price. If you win the bid but have not met their reserve, they will offer a lower price. If you pass on that they will auction again and if you win they will make a slightly smaller offer. This continues until you agree. From this point forward you work with people from India. You will be given a choice of using their title company at no cost, or paying for a local title company to prepare the HUD and close. Their title co. is Premier Title out of Atlanta but you will be dealing with someone in India. Usually all liens are settled and you get a clear deed. But that does not mean that the local municipality does not have open claims for cleanup, utilities etc. At this point all correspondence is ignored which includes Premium Title. You may be better off paying a local title company to provide a real title policy, particularly if the municipality also supplies electricity and gas.

Everything here is accurate. Hubzu is owned by Ocwen bank, long the scourge of the REO world with crappy policies and customer service, and seemed to double down on their stupidity with Hubzu. Their asset managers and support team has always been out of India, since 2007 or so when I first started dealing with them. Good idea on paying your own owners policy to get a local title company to close the transaction for you, they are more likely to get you all of the info on what needs to be cleared, etc.

The local real estate agent they use now ever since Hubzu came out is based out of Florida, with a Colorado real estate license.  Good luck trying to get ahold of him if you needed anything.  If I see the property is listed with this guy through Hubzu, I immediately just do a hard pass.  No thanks, not worth the headache!  

A property not far from my home is listed on Hubzu, and I bid on it last week. What an irritating process. I ended up being the high bidder, but the property was relisted immediately. I somehow expected that they might contact me and say "Your bid was insufficient, but we would take $X." What an unfriendly process for the buyer all the way around.

I do wonder why a bank, that supposedly would like to actually SELL a property, would use Hubzu as the sales medium. It really does not make sense to me.

Sadly my experience with HUBZU was similar. A local property was listed that I had my agent inquire, and we tried to bid, over the course of a couple months during multiple re-listings (even when getting the winning bid). Support was non-existant AND if you do win the bid they add additional fees technology fee and a few others) onto the total cost.

While I'm not at the totally avoid stage, it's close... 

Hello Anson,

It sounds like you have had a frustrating experience with Hubzu.com.  If you need any help in the future feel free to reach me at [email protected]  I also wanted to point out that Hubzu.com is not owned by Ocwen.  We are separate companies.

Thank you!

Jonathan Dees

sure.  And my rentals are all seperate llc's.  They are not at all related.  Totally unique, one has nothing to do with the other at all.  Just a pure coincidence.

http://www.thestreet.com/story/12083751/1/bill-erbey-made-23b-off-your-underwater-mortgage.html

We were winning high bidder on a foreclosure but had to up our offer to get the property as Hubzu would not award the property based on high bid. Very dishonest and misleading. In addition, all closing and processing for our property is being done offshore making it difficult communicating with title company. I personally would never use Hubzu again and buyers beware - read all the fine print and educate yourselves with this process. We are experienced buyers/seller but due to the hassle and hubzu pricing/auction practices, we won't entertain them as an option when looking for properties.

@Jonathan Dees There is a property in Windham NY with an AltiSource sign on the front door. When I contacted AltiSource about the property, they know nothing about it and I don't see it on Hubzu the last time I checked. What's a good way to get past the bureaucracy and find out about this property?

HUBZU is Not in fact actually owned by Ocwen.  Hubbub is owned by Altisource, which used to be owned by Ocwen.  They spun them off in 2010 or so, but yes they have a very strong working relationship.

This post has been removed.

Originally posted by @Jonathan Dees :

Hello David, I work for Hubzu.com and would be happy to try to help.  Please email me the property address and details of your situation to [email protected] and I will research your situation.  

Thank you!

Jonathan Dees

 Does Hubzu work with Altisource or an entity owned by Altisource??? I am CURRENTLY in under contract with a property we won by bidding through Hubzu.  We bid in July and were supposed to close on August 11th and had to request an extension to August 31st because we can't seem to get Altisource to provide our title company 1 document showing proof where the bank has appointed Altisource as Trustee or given them the right to sell the property.  We have now requested ANOTHER extension and are awaiting a reply from Altisource.  My local title company is willing to overlook some other title errors if we could just get this 1 document.  No one can seem to get a hold of the appropriate person at Altisource to get this deal done. I am getting married in 3 weeks and no house to come back to.

Make sure you see the piece before bidding or making offer, please.There's a condo close to me, Westbury, NY. I have been watching it for a little while. The first time i watched (may not be the first time auction), it was stated as "one bed room, one bath, 800 sq ft." on hubzu and zillow. Starting bid was 143k, someone bid it up to 200k and it gone under contract, But it's back to the market after few days. This time, it's state as "Studio flat, 800 sq ft" same on both Hubzu and zillow. Starting bid was 128k, no one bid.

So I went to see the place. It's not 800 sq ft. I think it's around 400 sq ft in bad shape. No one has been living inside for at least 3 years, as a note from building administration on the bathroom sink since November 2013.

This time back to the auction, all the listings have been changed to "2 baths 2 beds and 800 sq ft" and starting bid raised up to 143k

So the information has been changed in purpose. They made up story of a fake "2 beds 2 baths 800 sq ft" from actual 400 sq ft studio flat.

So be careful. Check things out by your own eyes. 

How does it work with title?

Are you bidding knowing that the title will have to come clean at the time of sale? Or do you need to be pulling title on everything. 

Does anyone have a legit contact person or phone number for someone at Hubzu who knows what is going on or the listing Agent / Agents?. My realtor bid on a Hubzu property for me and the listing was unexpectedly removed. not outbid, not sold, just removed. Customer Service was not much help, they told me that the listing was removed and would not be posted again? As much as everyone posts to stay away from Hubzu I really wanted to try and close the deal. Any info would be appreciated. thanks

Many of these questions were covered in my earlier post. 

@steven segal: The seller will pay the expense of Title Insurance "if" you use their company. I recommend you use a local title company that will perform a search and issue the title insurance. A customer I worked with was stuck with a bill by the local community when the bank failed to respond. And just like the entire process with Hubzu, you will not be able to contact the listing agent directly so your agent is only available to have contact someone in Mumbai India. 

@drew engel: Your agent is probably very frustrated in dealing with the maze that Hubzu has for contact. As I mentioned above, he only has email contacts with the seller and title company, if you get that far and they are in India. If the auction has ended Hubzu will contact the highest bidder and will offer a price that higher then the highest bid. If they do not come to an agreement Hubzu will restart the auction. It is possible Hubzu suspended the auction for some reason. I have not had any experience with that, so I cannot advise you on that. 

How do houses get listed on HUBZU? 

There is a property that I have my eyes on and I noticed its on HUBZU. I called the listed agent for more information and she tells me that they have no record of this property. Then stated it can be an old listing? I mentioned I found her contact thur this website HUBZU, but she had no idea and works for a real estate company in Downey, CA 

I called the 855 # from their website because the property I am interested has "Reserve has been met" right next to the property. I was curious what the reserve was or if it is still available. After calling, The reserve price sounded really nice for the area. I was unable to connect and talk with somebody live on the phone. 

Is there a way to determine what bank owns this property?  Thank you all in advance for any input or advice.

@Jose S. if it is a Hubzu property and it is vacant and has showings, get a local agent to represent you and have them schedule a showing.

The agent can take it from there and if you are interested place a bid on your behalf.

@Jose S. , then the Hubzu listing probably says do not disturb occupants and a showing prior to purchase will not be possible.

If you win the bid, you will be responsible to remove the tenants which can be an ordeal.

@Percy N. Your absolutely correct. Listing says "REO occupied. Please do not disturb occupant."

Is this where "cash for keys" deal takes place?  I actually know somebody that knows the occupant. Which is very interesting to me. Its been on my mind alllllll day today. 

@Jose S. , that is correct. Cash for keys is the first thing you would offer to avoid a long and costly eviction process, but from what I have heard, occupants in hot markets like yours have turned down thousands, even ten thousand dollars (here we would offer them $500-$1000 or pay for moving).

If you have a way to get to the occupant, that is a plus. See if you can speak to them even before bidding. If this is going to be a rental for you, ask what they would be willing to pay in rent if you let them stay? Try to make it a win-win.

If they are disgruntled, there is a chance they could damage the property prior to your posession.

I have purchased multiple priorities though Hubzu and I haven't had that many issues. I have only completed one of the closings using their title company. I agree that their communication is not the best but it is better than Auction.com. The last two closings I used my Title company and they both closed within one week of the original contract. I don't have as much competition on Hubzu and maybe that is because everyone else has given up dealing with them.

It has taken me anywhere from 30 to 45 days to close even as a cash deal. Their side won't move any faster than the original closing date. Don't expect them to get in any hurry even if you are able to close in under a week.

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