HUBZU Experiences Revisited

20 Replies

I've been tracking some REO properties on HUBZU and have a few questions:

1. One particular property is listed on MLS at full retail price. The full retail price would be the market value AFTER the property is rehabbed. Most people indicate the MLS prices are below market value to attract interest but I'm not seeing that here in the LA area. Your insights?

2.  If a bidder wins an auction but the reserve is not met, does HUBZU contact all the bidders of that auction with a "buy it now" price or only the highest bidder?

3.  HUBZU has a no shill policy.  CA law prohibits shill bids unless disclosed.  However, on one particular auction I'm following, I continually see one bid at or very near the opening bid price on every other auction.  Of course, the property goes back to auction within 30 minutes of the auction ending when there is a bid ... and the new price is usually reset above the price of the "failed" bid.  Do you think banks are still bidding against themselves to inflate prices or is it just another investor trying to get a reading on the reserve price?

4.  One auction states: SPECIAL SERVICING CONDITIONS APPLY.  Bid/offer review and contract generation may take several weeks.  Does review typically take several weeks or does it happen faster?

thanks for any insights you can provide!

I have had no luck with Hubzu I have been bidding off and on for 2 years Recently I won an auction and Hubzu decided not to sign the purchase agreement then relisted the property It sold at a higher price then I was wiling to pay After factoring in all the fees you usually pay above the FMV . They have complete control of the process may not let you view properties(occupied status) or turn on utilities and sell as is People love auctions and throw out come sense when bidding Some people have had success but usually in smaller markets

Thanks Steven ... do you know the answer to any of the questions above?  

This post has been removed.

xome, hubzu, auction.com and the rest of the copycats -> still suck.

end of story.

Originally posted by @Account Closed :

@Peter Thomas There is a good chance the bank will bid in order to get a better price, and you say shill biding and there is no way for you to prove it. Offer FMV with no contingency and see where it will take you. Show a bank statement to let them know you are serious.

So you are saying they will do it even though it's against the law now in CA?  Do you think a bank would create two fake bidders? or just one?  

Pretty sure hubzu bids on their own properties. But they certainly sell a lot more to investment companies than individuals, that I know for sure. Your story is VERY common. And you'll never get anyone on the phone there. 

Even if there are no bidders the seller still has a reserve price and will not take a deal There are plenty of bidders who do not have to qualify to bid Also it is not entirely illegal

http://leginfo.legislature.ca.gov/faces/billNavCli...

"AB 2039 also prohibits the use of "shill" bids (bids not from a bona fide purchaser that are used in auctions to drive up the sales price during the auction process), while permitting "credit bids", and seller bids with full disclosure. "

Originally posted by @John B. :

Pretty sure hubzu bids on their own properties. But they certainly sell a lot more to investment companies than individuals, that I know for sure. Your story is VERY common. And you'll never get anyone on the phone there. 

 Hubzu policy is to not bid on their own auctions.  And unless disclosed, nobody can in CA....legally anyway...

You guys have some good feedback...i'd appreciate it if you would look at my questions in post 1.

thanks.

Originally posted by @Peter Thomas :

I've been tracking some REO properties on HUBZU and have a few questions:

1. One particular property is listed on MLS at full retail price. The full retail price would be the market value AFTER the property is rehabbed. Most people indicate the MLS prices are below market value to attract interest but I'm not seeing that here in the LA area. Your insights?

2.  If a bidder wins an auction but the reserve is not met, does HUBZU contact all the bidders of that auction with a "buy it now" price or only the highest bidder?

3.  HUBZU has a no shill policy.  CA law prohibits shill bids unless disclosed.  However, on one particular auction I'm following, I continually see one bid at or very near the opening bid price on every other auction.  Of course, the property goes back to auction within 30 minutes of the auction ending when there is a bid ... and the new price is usually reset above the price of the "failed" bid.  Do you think banks are still bidding against themselves to inflate prices or is it just another investor trying to get a reading on the reserve price?

4.  One auction states: SPECIAL SERVICING CONDITIONS APPLY.  Bid/offer review and contract generation may take several weeks.  Does review typically take several weeks or does it happen faster?

1. Ive found that the listing agents list Hubzu (Ocwen) properties for fair market value on the MLS.

2. Hubzu contacts all bidders with an opportunity to provide a "best bid". The best bid normally has a minimum bid. I've found that this minimum bid amount is almost always unprofitable. In the only instance where their best bid opportunity was reasonable, I bid and was awarded the property.

3. I think the investor just bids since the opening bid is pretty low, and hubzu rejects the bid since it didnt meet reserve.

4, Mine have taken a few days to a week max.

@Peter Thomas

1) Hubzu has a weird way of listing their properties online. They essentially have four prices. Usually their MLS price is relatively high; why they do that is beyond me. On their own site, they have a relatively low minimum bid price listed that people can bid up. Internally (though they very rarely list it) they have a "reserve price" that needs to be met during the bidding period before they accept a bid amount. They usually let you know when this price is met. Lastly, they have a different reserve price that they offer out to any bidders on an expired auction. Generally, this is lower than the reserve price that can be met while bidding. I guess this sort of answers your second question too.

3)  Couldn't tell you what they do about those bids.  I've never seen them artificially bid up a property that I've also have clients bid on, so I'm not sure about that.  

4)  Usually it takes a few days.  Surprisingly, the last Hubzu transaction I worked on was fairly efficient with getting all the paperwork out.  

Matt Lefebvre, Real Estate Agent in NH (#070207)
603-554-2309
@Matt Lefebvre

@Peter Thomas

 @Jesse Tsai:

Thank you very much for the information exactly what I'm looking for. The 4 prices makes sense.

Lets say $140K is starting Hubzu bid, $170K is reserve, and $200K is MLS. Auction ends with 3 bidders but reserve not met. A fourth price ($160K) is then offered to the 3 bidders on the expired auction. How quickly does this occur? I ask because I've seen some auctions with one bidder go back to auction within 20 minutes.

Is the fourth $160K price a take it or leave it price? Or can you counter with something above the highest auction bid (but reserve not met). Is it first come first served on the fourth price or is there a 48 hour window for all bidders to respond?

Originally posted by @Jesse Tsai :
Originally posted by @Peter Thomas:

Please see my reply to Matt above...i can't figure out how to paste user names into a reply without quoting their text.

Hi @Peter Thomas , what I've found is that they tend to offer a minimum price (that $160K you mentioned) to all of the previous bidders and tells them to give their highest bid amount.  They should have 24 hours to respond.  If no one puts together another bid at $160K or higher, than it'll be relisted on the auction site again probably at $139K.  

Matt Lefebvre, Real Estate Agent in NH (#070207)
603-554-2309

@Matt Lefebvre

thanks for the name tip!'

I just bid on a house (to see the process work).  Incredibly, people bid the price to 85% of market value (reserve not met) on a house that is occupied with no inspection or financing contingencies permitted!  I didn't receive an email offer to give my highest amount even though i was the second highest bidder.  

The house was relisted within 5 minutes at the last highest bid price.

Now that's just a bit nuts!

@Matt Lefebvre   @Jesse Tsai

the other thing that was interesting in bidding on that property was that I couldn't select my own escrow company (even at my expense) UNLESS I opted to purchase with a mortgage.  Is there a way to select my own escrow company if paying cash?  I know it costs me more money but I didn't understand not at least having that option.

@Peter Thomas

I haven't switched any cash deals away from premium title yet.   Their junk fees haven't been outrageous enough for me to really push the issue, and their closers in India aren't as terrible as I expected.

 I'll try on my next transaction and let you know what happens. The way I'll try to get the escrow switched is to just submit an addendum stipulating a new closer and title company with the RPA. 

It may end up costing you less money if you have a relationship with a escrow/title company that gives you discounts, and you get a binder to make up for having to buy your own owners policy.  

@Matt Lefebvre   @Jesse Tsai

okay so another auction just got more crazy...winning bid was $490K and reserve met.  I bid $450K and a bunch of others bid higher than me.  Listing was just cancelled and relisted with a starting bid of $350K!!!  I wasn't contacted about submitting a better bid....so it seems that not all auctions result in 2nd offers being sent out to unsuccessful bidders.

I just dealt with something similar @Peter Thomas .  Hubzu randomly cancelled a bid and relisted it back at the start even though there were several bids already sitting on it.  So now instead of waiting a day for the bidding period to close... we have to wait six days.  Sometimes these sites just don't make a whole lot of sense!  

Matt Lefebvre, Real Estate Agent in NH (#070207)
603-554-2309

Join the Largest Real Estate Investing Community

Basic membership is free, forever.