hubzu auctions

11 Replies

has anyone else had any experience with i bought a house thru them on line here a couple of months ago. almost instantly, they were sending me emails about how i had 24 hours to sign the contract or they would re-list the house. they hadn't even sent me the contract to sign yet. next, they send me a threatening email that i would have to sign their contract immediately or the would re-list the house. i sent back an email informing them that i needed them to send the contract for me to sign. 

i finally got that, signed it and faxed it back to them. they told me that they got only half of the document, so i had my agent send it back again. they informed us that they got only half of it again and threatened to re-list the property again. i called them, only to find out very few people there can speak english and those that could, couldn't speak it very well. 

after several heated phone conversations and emails, i finally had to get my attorney to call their attorney to get an extension on yet another contract they needed me to sign that they failed to send to either me or my attorney. after that, their attorney kept sending me information when they were specifically required to contact only my attorney.

finally, i got the proper contract, signed it, sent in a cashiers check for the requested deposit, and assured myself, my partner and my attorney that everything has been completed. now we are awaiting a closing date. after a couple of weeks goes by, i notice that has, in fact, re-listed the house on their website again!!!!  i have called the document processor, his manager and even contacted their attorney looking for answers. no one has called me back yet. 

has anyone else had these issues with these people???? looking for advice. should i tell them to take a hike and take my business elsewhere??? i have purchased another house thru and have had zero issues with that closing. advice please!!!!!!

How frustrating.  Thanks for sharing.  I have not had any experience with hubzu but look forward to hearing what other have to say.

I know of situations where actually send their own people in to bid up properties, and if they end up winning, they just go to the 2nd highest bidder and say "Well the highest bidder fell out so you have it now."  You would think this would be illegal right? 

I know that @Brian Hayes  had a horrible situation with them where he actually won the highest bid and for some reason they still couldn't close.  He could explain in better detail.

I will never use them.  It seems like borderline scam.

@Mark Elliott  Sorry to hear your struggles, I definitely feel your pain. @John Horner  is correct we did have a run in (did not close) with Hubzu. Your dealings with them is unfortunately all too common, if you search hubzu on BP you will find 100+ references in the forums and I doubt many positive reviews. All of that said I personally know people who have bought homes from them and have not had many issues. I will give 2 pieces of advice but please know that your situation and results should be case specific and I would recommend you talking with your attorney before taking action on either suggestion.

1. Contact your bank and advise them you have been defrauded and you want to your cashiers check canceled/disputed/returned. Seems harsh but you want your earnest money held by a title company that you know and have worked with since they will ultimately return your funds in a timely fashion should you, for any reason, not close.

2. Continue to play the game, keep giving them whatever they ask for and diligently try to have as much contact from their "attorney" to your attorney as much as possible. This is what they respond to the most.... attorney threats.

Again, please consult your attorney for their recommendations as there could be a variety of ripple effects from whatever you choose to do next.

Good luck

Well, other than "the accent" of their reps, and the fact that they are simply working from a script, I don't see any great difference between Hubzu and the rest of the auction co.s.  They all end up auctioning off properties for banks, where there was some defect I the foreclosure process, so they can't deliver clear title, and the sale gets canceled.  I prefer using our title co.s, even though that means you usually pay for the title insurance.  NONE of the title co.s that work for the auction seem to have a clue what is going on.  As far as your title co. vs their title co. holding the EM, it doesn't make a great difference.  They're both bound by local laws and the contract, and can't just give your EM back because they like you.  With a dispute over the EM, you're likely headed to court no matter what.

Also, this isn't a law suit, so HUBZU isn't "required to only deal my attorney".  If you insist on that, instead of attempting to handle it yourself, you're probably dooming your own deal.

We have purchased five houses from HUBZU in the last three years.  Some of the "Own It Now" offerings have been incredible deals for us.  We are cash buyers so maybe that helps eliminate some of the silliness the rest of you have had to contend with.  I can only recommend that you use your own common sense for purchasing houses on HUBZU as you would purchasing them from a realtor.

With regard to hearing that HUBZU employees are bidding to get the price up I can only say - so what?  If you have done your research you know how high you can go on your bid.  How can someone cause you to exceed your own limit?  How can you blame anyone for you spending too much on a house? 

Forgot to mention, ALL the auction houses "bid on behalf of the seller", and it's disclosed on their websites.

@Mark Elliott  We've had similar experiences with HUBZU to yours.  Took a long time to close dealing with a law firm in India.  Not sure it was the people from HUBZU though, but the seller that was using HUBZU.  

thank you all for the replies. i am glad its them and not just me and my " wonderful"  at this point, the house is still on the auction block, and i am still waiting for a call back regarding why, since we have a signed valid contract, they are re-listing it. i may grow old waiting. i will keep you all posted as to what is going on. at this point, i would highly recommend over hubzu any day

I would be happy to assist and answer any questions/concerns you may have.  Please send your contact information to [email protected]  I look forward to your response!  - Keith, Hubzu Customer Care

Also, want to clarify that Hubzu never bids on the properties listed, through proxy or not.  Please feel free to send me your contact information to [email protected] and I would be happy to assist you further.

- Keith, Hubzu Customer Care

I've bid on one that went fairly smooth until a title issue was discovered. Several months later and extensions by Hubzu I finally just walked. Most listed here are trashed properties worth a fraction of what they are asking. Make sure you read the contract also, it is very one sided.

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