I am the winning bidder on a good deal with Auction.com. I get all the paper work in quickly along with a $2500 deposit. I liquidate some funds from my brokerage account to show proof of funds and wait on Wells Fargo to approve my offer. So after waiting almost 4 weeks, not ever worrying that they would reject my contract after I won the bid, they reject my offer and say they will begin to refund my deposit. What a joke. I've purchased 2 good deals on auction.com, so I'm not sure who to blame, auction.com or Wells Fargo. Either way, this is a big disappointment and has really tied me up financially for the time being. I sincerely doubt I will get any interest on my funds and I'm sure the contract is bullet proof not in my favor. Before this, I would highly recommend Auction.com
Man....that sucks. My only experience with Auction.com is at an actual foreclosure auction where buyers are required to bring cash/cashier's check to buy on the courthouse lawn (literally) within minutes post the end of the auction of each particular property. Not sure what to make of your situation, but definitely sounds fishy. Perhaps someone with experience in this will give some insight.
Had the same thing happen to me recently with Auction.com. Lots of paperwork and $2500 deposit (wired at my expense) only to have it rejected. It took 10 days and at least 6 emails and 8-10 phone calls to get my money back via snail mail.
I'm done with them.
It’s wells; not auction.com. Believe me.
Auction.com loses when a Deal goes south. They want the properties to sell. They even argue with the banks.
I'm not familiar with Auction.com however I can see there's a house which is listed on the site and it's up for auction on the county website. I can only assume Auction.com has made a business of biding for people who can't be there. I've been to the courthouse auctions a few times and there's sometimes a lawyer biding for the bank (or perhaps a buyer from Auction.com). I'm assuming if somebody at the courthouse wins the bid, then the bank gives back the deposit. There's no way to foresee how high the bid will go and I haven't seen them wait for anybody (online). I can see how technology could a limit buyers in this situation and it's best to be at the auction.
The courteouse auctions typically go back to the Bank and then go to Auction.com. This was an reo and I was told since I didn’t meet the reserve, the bank has the option of reviewing and rejecting the offer, but hey , I can bid again and win and get rejected again! apparently a property can be “sold outright “ or “subject to,” which mine was and lender can review for 15 days while sitting on my deposit and probably earning some interest. I should have know WF is a unscrupulous company
Its a Wells Fargo issue. I've purchased many properties through Auction.com with limited issues, other then the typical to be expected with foreclosures, and bid approvals when there's an undisclosed reserve amount. But every one I've purchased that was a Wells Fargo property I had delays and issues. Plus they're the only bank I know who requires "wet signatures", no electronic signing, you have to print all 30+ pages, sign, scan/email or fax back to them. Its 2018 not 1988!!
I Wells Fargo’s defense, they were the only major bank that didn’t need a bailout...
But otherwise, yeah, they can suck
I guess 12k for a property that only needs 10 k and would sell for 80 , shouldn’t be a slam dunk.
What’s your approach with Auction? Try to hit the reserve ?
It seems a bit frustrating and I hate to quit completely . It does seem to get s decent deal you have to spend close to the reserves.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing