online auction site home search.com
hello fellow bp members. i recently won a bid on a property on homesearch.com which is an online auction site banks typically use to sell off there properties. The reserve wasnt met but i got an email that the bank accpeted my offer!!! sweet!! but ive never dealt with this site or any online auction site for that matter. has anyone dealt with this online auction site and how was the process for you? any tips to help make the process smoother would be much appreciated. Thanks in advance
#1 Syndications & Passive Real Estate Investing Contributor
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#1 Syndications & Passive Real Estate Investing Contributor
- Investor
- Santa Rosa, CA
It's not too difficult, if they haven't already they'll send you a very one-sided purchase agreement to docusign and give you wiring instructions for your EMD. Then you wait, and wait, and wait and then you'll get an email with an opening package which you fill out and send back. Then you wait, and wait, then get an email saying they are ready to close and to wire your funds. Then you wire your funds and wait, and wait, then you get an email saying it's closed. Then you're done. Ask them to email you a conformed copy of the deed so that you have proof of ownership if you need to evict occupants.
One thing I do when they ask me to wire my closing funds--I ask them if the seller has signed the deed and HUD. If yes, I wire. If no, I tell them to let me know when they have the signed deed and HUD so that I don't have the funds sitting in escrow any longer than necessary.
Just keep in mind that they frequently blow right through the closing date in the contract. You just have to be patient...it'll close, eventually.
thanks for the info @brianburke I read your articles and listen to your podcasts and getting some advice from a successful investor as yourself means alot. One small question they ask if I want to use my title company or their title company. If I use theirs I won't incur the title search costs. Do you use your own title company/attorney or do you use theirs.
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#1 Foreclosures Contributor
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Use your own title co., as with any REO, in my opinion. Yes, you'll pay for the title insurance but their other junk fees usually are close to the "savings" anyway, and more importantly you want a "complete" title search (unrecorded gov't pending liens, etc) so you don't have those exceptions you'll normally see in the B section exceptions, with their title policy.
great advice thanks Wayne