Anyone know how a closing works on Hubzu.com?

Question

I won a property on Hubzu.com yesterday. Before I bid I had asked the online chat person how closing actually worked. His name was Ven from India, he told me all closings were done through email. I thought that sounded easy enough, so I bid on the house and won it for $17,000. Today, after having my realtor over to fill out a 32 page contract we get more paper work in our e mail this evening regarding having to go to a closing in NYC which is a 5 hour drive from our home!! Or we could pay a $300 travel expense for their attorneys to come to us?? I'm so confused!! Anyone who has had a closing with them, please let me know how it went down. This could be a deal breaker!!

Dell Schlabach · Answer

Are you a legitimate hubzu rep? Using hubzu as your last name makes you suspect. Why not use your real name if you are real.

Crystal Smith · Answer

The issue's not w/ Hubzu.  It's w/ the seller of the property that's using Hubzu.  We've purchased thru Hubzu before w/ an Indian company as the seller.  It was difficult dealing w/ the Indian company.  If you're paying an attorney to close the deal for you then give him power of attorney to sign off @ closing or fedex you the documents for you to sign and return.

Dell Schlabach · Answer

We bought five from hubzu last year, we notarized all the closing documents at my realtors office, they handled all the paperwork for me.

Keith Hubzu · Answer

Katie,

I would be happy to assist you in any way and answer any  questions you may have.  Please send your contact information to  connect@hubzu.com.  I look forward to your response!  - Keith, Hubzu  Customer Care

Kellie Seeley · Answer

I spoke with my attorney today after he received the paper work regarding traveling to NYC. He has dealt with online auction properties in the past and has never heard of such a thing. He told me not to worry and it can all be worked out. $300 is just an extra expense that I don't want to have to pay considering the house needs a lot of tlc. Thanks for all the comments, I'm sure it will all work out in the end.

William Robison · Answer

was the property in a state that requires notary signatures on the purchase deed?

Laura Williams · Answer

I also bought a place on Hubzu and I closed over email . The property was in Kansas City, MO and I live in NYC. I think the title company they used was in Atlanta. I didn't have to travel or pay anyones travel cost. I would think they would have to disclose an additional cost like that before you buy?? Seems strange

Naveen Desai · Answer

Hi Kellie,

I have bid won & bought, properties on  auction.com, hubzu.com and homesearch.com

The property I bought on hubzu.com - once you fill in the contract and send EMD, everything happens over email and then they will send you the Deed by postal mail to address you provide them.  I have not come across the problem like you have mentioned, about an attorney travelling to you or you having to go there.

I believe you did read completely the Documents and property details, and if this was not mentioned that you have to travel for closing, you should be able to contest that. They only might have said the property is "as-is" which you would honor, but the process of closing requiring travel should have been disclosed in the online auction. So explain this in email in writing and see what they have to say.

Also, when you get the email from Hubzu folks, they do share a phone number and you should be able to call and speak to them. Somebody in India, where their servicing happens from may help you or direct you on the next steps. You might also ask Hubzu to see if a local notary of attorney within your town can help.

In the end, If you think the property is really worth it and if it is a deal, would $300 make a dent? Obviously every $ does matter,  but so does time.

Good luck.

And just so you know and everyone else who buys properties online--

The first time when I bought property on Homesearch.com,  all the communication happened here in US. I am currently closing my 2nd through homesearch.com and this time around, it seems to be serviced from India.

Thanks,

Naveen.