Any experiences with Auction.com purchases?

16 Replies

Do your due diligents (flood zone, insurance cost, rehab cost, ARV, existing leans, updated taxes, ect.)
Pay for title insurance!
use your own closing attorney (theirs take forever) ( using theirs. my deal took 9 weeks on a under 25k all cash deal)
Dont get emotional or in a biding war. Know your numbers and stick to that!
Dont wait till after the auction to figure out how to pay, you have a very short time to prove proof of funds.

I used ************** This site to me has the most info for tax lien homes. I used https://unifiedtitle.com/resources/o-and-e/ to run the title on the home / land to make sure there are no other liens attached. I've also contacted the owners before the auction (if the address is available) to see if they were willing to sell me the home by paying off the tax lien. (attorney Quick deeds are a must for that scenario).  I use cash investors who don't want to do all the work and numbers. Good luck. 

Yes but you need title insurance to guarantee they didnt miss anything ,its not expensive.  Auction.com will give you free title insurance if you use their closing agent. so I took that deal.  I wont next time.

Took too long, and feel I would have received much better service using a local title company.

Sorry I have never used them. I don't want to use a site that is going to mean increased competition. They give national visibility to all their properties.  Just offering a different perspective.

I had a very bad experience with Auction.com today. Their title company will say the title is CLEAN but they will secretly shove the defects in the EXCEPTIONS section and will try to say as there's nothing wrong.

Add me to the list - NEVER use their title company.  I've made that mistake twice and I was an idiot for doing it that many times!  Doesn't matter if it costs more to use your own title company, just do it.  It will save you money, time, and headaches in the long run.

@Steven Bishop Let me start off by saying I've bought some absolute home run deals off Auction.com. You have to run the numbers and stick to your guns and sometimes wait for it to come up for auction a dozen times before they finally take your price.

That being said, there are several frustrating trade offs when dealing with them. Most of the responses seem to address the main concern, which is elect to use your own title company. You want your own company checking for liens and making sure you get clear title. 

The other frustration is timing. They abide by the hurry up and wait philosophy. I'm currently waiting to close on a single family home that went under contract June 1st. As soon as you win the bid they want the contract signed and the earnest money deposited immediately. Once they hold your money they go into limbo. I have had title and funds ready to go since the second week in June. They just sent me an extension and said he might be able to close by August 31th. 

Initially they told me the reason for delay was they needed my title commitment to request the deed to record into the sellers name.  They just recorded the deed last week and it was a judicial sale deed that was executed in early May. It was sitting on someone's desk and they just never got around to it. 

I still love the house and its going to be a great deal, but it's like this every time. Auction.com is there to get the property under contract and get earnest money, after that they really don't care.