At what point does a Hubzu offer become binding?

Question

Hi

one of my Hubzu bids just got approved. First, they want me to complete a contact information form within 24 hours. After that I am supposed to get the "PSA and associated documents" (not sure what exactly that is). Is anyone here familiar with the Hubzu purchase process? I wonder at what point the offer becomes binding and I cannot pull out anymore.

Simon Stahl · Answer

Than you both @Vivek Khoche and @Ronald Bourgeois. Yes, there was no initial deposit required to bid on the property. I think a lot of folks are just bidding like crazy there and once they win the auction, they just pull out.

Vivek Khoche · Answer

@Simon Stahl - Lot of folks do it particularly for CA properties, whole Salers just  get property under contract and then find buyers. Hubzu is only digital platform connecting buyers to sellers. Most of these properties belong to banks and their systems are totally screwed up.

You don't have to deposit any money while bidding, surprisingly you don't need agent as well.

If you need valium to deal with Hubzu, then you should stay away from REI .

Good Luck Investing

Vivek

Ronald Bourgeois · Answer

@Vivek Khoche

Question:  Did  you have to make a $1,000 deposit with the bid?  If so you could lose the $1,000 bid deposit.

If this is your first Hubzu Auction, I'd get your Lawyer involved and let your Lawyer review the documents and  transfer your bid price to Hubzu.  One other thing, take some Valium as Hubzu can give you a constant anxiety attack from start to finish.

Congratulations on your winning bid.

Simon Stahl · Answer

Ah, purchase and sales agreement, that makes sense :-) So I guess until this is signed, I can still pull out if I want for any reason, after signing only for the specified reasons. Thanks for explaining @Vivek Khoche

Vivek Khoche · Answer

@Simon Stahl- PSA is purchase and sale agreement that you need to accept as buyer, it will be then signed and accepted by Seller at that point of time you need to send earnest money. Property goes through the normal closing process depending on financing. You can back out anytime as per the terms of contract. They claim that they forbid buyers backing out but haven't seen that happening.

Good Luck Investing

Vivek