non-bank owned homes in auction

15 Replies

Hi,

I am fairly new to all this. I was looking at properties on auction.com and noticed that there were homes that were non-bank owned. So I am assuming these properties are not in distress (foreclosure, REO, short sale), so what would be the motivation of selling a property in the web site (or what would be a buyer's motivation to buy such a property instead of just buying a non-auction property which can be inspected)?

Thanks,

Javier

Though the bank has to approve or disapprove of any offers, a short-sale is not bank-owned(yet). HUD and other government agencies auction properties as well. BTW, welcome to BP.

Kudos,

Mary

Thanks for your response and for the welcome.

@Javier S. welcome to BP.  Those properties or the seller may be in distress and an auction is often a fast easy way to sell. Many properties trade from investor to investor via auction.  I probably auction about half of the properties I sell.

I recently did a Google search on Auction.com/Complaints, and found over 25.  I also tried to Bid on a property which they asked for my Credit Card to charge $2,500 for the opportunity to make a Bid.  I was surprised  to see such a company on Bigger Pockets.

Has any BPer had a positive experience with the online auction?

auction.com has has two types of Non REO properties; auction.com serves as the foreclosure trustee in some locations that have non judicial foreclosures. Also, some banks will run a portion of proposed short sales thru auction.com looking to "verify" the price. A high bidder on these simply goes into contract on a short sale.

Thanks for the replies. I did contact the agent for a listing and was told that it was a for sale by owner that wanted to concentrate on fewer bigger properties.  That kind of fits in with what @Ned Carey mentioned.  So it is more like an easier way to sell in this case.  
Originally posted by @Alex Hamilton :

...  I also tried to Bid on a property which they asked for my Credit Card to charge $2,500 for the opportunity to make a Bid.  ...

 If your bid is not accepted, the credit card charge is supposed to be reversed. 

@Alex Hamilton

I've bid on several at Auction.com (but yet to win one).  There isn't an actual "charge" on your credit card, it's just a hold placed on it, similar to how a deposit is put on by a hotel or rental car company.  I've never seen an actual charge or reverse on my statements.  

Thanks Chad, I worry about giving any kind of Bank info over the internet because this company has so many complaints listed on line. this company

Originally posted by @Wayne Brooks :

auction.com has has two types of Non REO properties; auction.com serves as the foreclosure trustee in some locations that have non judicial foreclosures. Also, some banks will run a portion of proposed short sales thru auction.com looking to "verify" the price. A high bidder on these simply goes into contract on a short sale.

Wayne: Please indicate your experience with the company.  I checked out one they were offering that was owned by someone locally that was paid for, and the owner had no idea why it was on Auction.com 

Originally posted by @Steve Babiak :
Originally posted by @Alex Hamilton:

...  I also tried to Bid on a property which they asked for my Credit Card to charge $2,500 for the opportunity to make a Bid.  ...

 If your bid is not accepted, the credit card charge is supposed to be reversed. 

 Steve:  the 25 complaints against the company don't indicate this reversal.  However, I personally know of properties here in Baton Rouge, Louisiana that they are getting  money for Bids that they have nothing to do with the property.  I just hope BP is not promoting Scams

Originally posted by @Ned Carey :

@Javier S. welcome to BP.  Those properties or the seller may be in distress and an auction is often a fast easy way to sell. Many properties trade from investor to investor via auction.  I probably auction about half of the properties I sell.

Has anyone had any actual experience with Auction.com..I ask the question due to over 25 complaints against the company I found online

@Alex Hamilton auction.com is the largest, most legitimate REO auction site. The $2500 is Not charged if you're not the high bidder. People who say it is are simply mistaken, or lying because they changed their mind. To be clear, I am not a fan of theirs, particularly after they started muscling in on short sales, but they are legit. I've bought three properties for clients through them.

@Alex Hamilton

Here is a link to see what you can expect from these auction sites... this one is specifically HUBZU but Auction.com operates the same pretty much.

https://www.biggerpockets.com/forums/311/topics/15...

I have seen in my market where the property price is ran up in the last 15 mins of the auction then the property comes back on the auction over and over... They also have the property simultaneously listed on the MLS taking offers during the auction period.

I believe when the auction ends the highest bidder's bid gets sent to the seller just like a regular offer and the seller can accept or reject the offer...   This system doesn't appear to be a real auction system where when your the highest bidder you win.

Jeff V

I have had nothing but positive experiences with Auction.com on the three properties I purchased through them. I buy projects from them and have ranged $8-$17k final and expect the worst, so far all 3 were great ROI. The third one i was high bidder 4xs and seller finally determined that must be market and accepted my bid.

The $2500 is a hold and does not apply until the bid is accepted.  As it clearly states they will bid until meet the sellers minimum.  Some sellers are motivated some have a firm min price.  By the way after the 2nd purchase they no longer impose the deposit to bid. 

Is 25 complaints really bad? what percentage is that of transactions.  Somebody always complains, you are buying an auction property if you want a 100% perfect then that is not the place to buy. How many realtors are you going to find with 100% happy buyers?  

In comparison Hubzu has lower fees but higher starting bids, i have never won any properties from Hubzu.   Often Hubzu starting bids are over my calculated final bid.    Just my experiences, I am sure negative feelings also will be found. 

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