Hi everyone:-) wondering if anyone has ever had any deals with Hubzu and if so, how it went? I've been hearing mixed things about dealing with Hubzu properties.
I've used HUBZU and have won bids but upon further inspection they ended up not being deals for a variety of reasons (e.g. condition of property in pictures was entirely different).
The Hubzu experience can be exhausting and frustrating everything takes more time than necessary. They do not return phone calls, they ignore emails, they don't respond to pressure they are completely indifferent. However, we have purchased several homes through them despite the obstacles. You need to do inspect the homes as most are not in the condition presented or they might have been at time of listing. In most instances we found the information to be very inaccurate, yet we acquired the property. They are a good source that should not be ignored. In some instances we used our own Title Company and in other instances we used theirs. We feel more comfortable with our own title company. Good luck.
I would be happy to assist you and answer any questions you may have. Please send me your contact information. I look forward to your response.
- Keith, Hubzu CC
thank you for the feedback. What about earnest money with hubzu if the deal does not go through do you get back your earnest money does anybody know?
I bid on a property in my neighborhood. It kept going from "listed" to "under contract." The bid started off very high, then it dropped. I started bidding when it dropped to a more appropriate price.
Mysteriously each time I bid, it would jump $75k+ from one bidder bidding up to the "reserve" price. Then the property went UC. A week or so later it came back at active.
It kept doing this for months. On and off the market. To me, it looked like shill bidding with it jumping like that to the reserve. So much so that I almost complained to DORA and the State.
Hubzu is a joke and a waste of time.
Don't forget that the buyer has to pay a VERY large fee to them if he or she wins. 4.5% in this case or $13,500!!!
I purchased a property through Hubzu in June. I guess I was fortunate that the process went smoothly, but I'm reading a lot of troublesome posts about them.
THe no D.D. period is awful
We closed on a rehab for an investor about a couple of years ago thru HUBZU. Our experience was one of extreme caution as when we read the title and escrow instructions there was a carve out for the previous owner to redeem the subject making the sale null and void. Basically the homeowner went thru a divorce and then went thru the foreclosure process filed a BK and so on. There was a 1st and 2nd involved. They did change the escrow instructions and prelim. Thank Goodness we caught it. Investor had no idea that something like that existed. Anyway, he did get a great deal.
Here's what happened with us within the past week:
I've just finished filing a complaint with the BBB and emailed Contact 6 in Milwaukee hoping one or the other or both will help. Now time to hit FB and hopefully (with your help) get this moving far, wide and fast. I want others to *not* experience the same raw deal we got and maybe just MAYBE the truth being shared will cause the company to have a change of heart and do the right thing ... ok, so a girl can hope!
NOTE: This will be very long, PLEASE please bear with me. It's unbelievably important not only to us but other consumers as well. I don't know how this company is growing with how they do things but it is (yes, in our local area, too!). Mine isn't the only complaint, I've found numerous others in my research.
On 11/9/2015 we participated in an online house auction. We already knew before we got involved, NOT the best way to buy a house but because it didn't cost a dime to bid and it was the ONLY way to get this house we want so bad that after some research we decided to give the company the benefit of the doubt and gave it a try.
After all, people will complain loudly online but happy customers share a lot less than angry disgruntled people. I found 21 complaints filed against them at the BBB and for a nationwide organization I figured not bad odds. Additionally each of the BBB results showed HUBZU fixed the problem in short order in the complainant's favor. This all gave me a tiny bit less to be skeptical about.
I had already located the actual seller which wasn't easy. It's Ocwen who *just happens* to be just one cog in the wheel of a multi-company conglomerate one owned by the other and the other and on and on. There were enough companies owning one another & working together to make your head spin which refueled my skepticism. Altisource, HUBZU, Ocwen + several more are all in cahoots together. RED FLAG!
I watched the auction from my computer while our Realtor did the bidding from her office about a mile away and we chatted on the phone off & on during the bidding war which was between us and one other bidder (or an employee or computer @ HUBZU - we don't know for sure). We both noticed early in the game that the timers on our two screens were different, with hers being about a minute or so ahead of mine. RED FLAG!
A few moments after our Realtor placed a bid the bidding timers on both our computers hit zero's and the screen automatically changed to display a new message that went something like this: "The AUCTION IS CLOSED, all bids are being processed and sent to the seller ... blah blah blah." Our Realtor got an almost immediate notification email containing the same basic message and our individual screens showed her latest bid for us was the one that triggered this. My thought was "This is too easy." I was not jumping for joy for winning but instead was skeptical and shortly found out I had good reason to be.
A few moments later another higher bid displayed on the screen and the bidding timer was reactivated. What happened to our CLOSED AUCTION we both wondered? Neither of us having participated in an online *house* auction before we both were scratching our heads.
Now you all might say that it's the different times on different computers meaning the other bidder's screen didn't show closed likely because his/her timer was behind ours. Thought about that but something bugged me so I contacted a non-involved, objective bystander website hosting company and spoke directly w/their techs. I did not tell them we were involved in this, did not name *anyone* as participants, didn't even say it was a *house* auction. I wanted an unbiased answer so I laid it out strictly as to what had happened and then asked about the bidding timers which I was questioning. They assured me I was right and that when it comes to auctions the bidding timers display *from the auction company's servers* and ALL timers on ALL their servers SHOULD be properly synchronized for each auction so each bidder sees the same screen at the same time ... no matter how many bidders there are. Interesting, works like eBay, right? But I've never had a problem with eBay timers.
We continued to bid as we were willing to go higher and thought maybe just maybe the other bidder would drop out before we hit our max bid. Didn't happen, we had to drop out, they obviously have more money than we do.
I stewed about this for awhile wondering what to do. The house *should* have been awarded to us ... we placed the bid that initially closed the auction! Later that day I got onto the HUBZU online chat, explained the problem and was assured the proper people would be notified so this could be investigated.
Two days later I was on the phone with the investigator of my complaint. Very nice man (yeah, ok, so he's got to be) he asked some questions, I answered them honestly. His last question was "What do you want to come out of this?"
I told him we want the house awarded to us @ the bid that closed the auction initially. We already knew we'd not hit the reserve bid that there would likely be a counter-offer from the seller and we were OK with that. But we weren't OK with the fact that we'd been cheated out of the opportunity to see this through because the CLOSED auction had been allowed to be re-opened by the other person's bid causing us to eventually have to drop out. ALL bids should have been prevented when the screen showed AUCTION CLOSED. He said he'd have to gather more info and would get back to us in a day or two.
This morning our investigator called to advise us that Altisource / HUBZU would NOT honor our bid or our request. They will NOT honor the initial CLOSED AUCTION - the house will remain with the other bidder. It doesn't matter to them that their timers weren't synchronized, it doesn't matter that what they're doing is unethical ... it boils down to greed and that in their eyes WE dropped out after the auction re-opened so basically they're saying it's our own fault. If we wanted the house we should have bid higher than the other guy. REALLY???? The reserve bid was met approximately $8,000 BELOW our highest bid so the RESERVE WAS MET but they're greedy!
We've been looking for a house for THREE YEARS! We recently lost the first one we fell in love with after all that time due to the sellers having accepted another offer just one day after we put ours in. Now we wind up in this mess. We really want this house (provided all inspections pass muster!)!!!
To any of you looking for a house - BUYER BEWARE OF HUBZU!
I dont deal with HUBZU any more. They are a pain to deal with, and there are plenty of other houses out there to choose from. I also dont deal with HUD homes anymore, just because of the condition of the properties.
Been meaning to tell this story for awhile. Mostly due to all the bad reviews/opinions out there about Hubzu.
I think I read all of them. Hubzu was the only way I was going to be able to buy this particular little turd of a house. The property adjoined mine, the house wasn't worth gas and a match, but it was several acres, and I wanted it.
I attempted, several times, to contact the realtor in charge of selling this house. Never an answer.
I was high bid every week (reserve not met). The following week, the auction would be started cheaper, and my high bid would be cheaper. Couple of times, the listing would just "end early" and be gone. I figured somebody else must have known how to buy it direct, and that it was just sold. BUT, a few weeks later the auction would start up again.
FINALLY, the auction ended and my bid had met the reserve. (price was less than half of my initial winning bid).
Again, I've probably read EVERY review/comment out there about Hubzu. AND, the one thing I NEVER saw, was "they stole my money". So, with that in mind, I decided to do it their way.
I planned on doing exactly what was asked, in the time frame it was asked, follow their instructions to the letter, and just see for myself why everybody hates them.
Thick, hard to understand, foreign accents? I have no idea. Every e-mail I received was from a person who's name I couldn't pronounce. Never had to though. Never talked to anybody. I simply read the email and followed the instructions. If there was a question, I asked in an e-mail and was answered within 24 hrs. (Usually, had I simply waited an hour, my question would have been answered in their next e-mail anyway). BUT, when I asked, they replied.
My realtor seemed more confused/concerned than I was. He found it hard to believe that I did certain things, instead of me asking him to do it. I told him, I was just following the instructions in the latest e-mail, nothing more....wasn't rocket science or anything).
I chose their closing company. Just assumed it would be easier/faster, and since I found no evidence of Hubzu being a scam, Why not?
This turned out same as everything else. I get an e-mail, follow the instructions, and that's all there was to it.
This was a cash deal.
I won the auction on 11th. Started the process on the 12th. Finished on the 25th.
Never spoke to anybody on the phone. Was never a need to.
I knew the house was crap before I bid. Best I could tell, they knew it as well, but, didn't know any specifics as to why......and just didn't care. Why would they?
I bought exactly what I expected and aside from the strung out "auction process", I had no trouble doing so.
I'd do it again.
Sorry you are getting the run around. I have watched several houses and almost none ever seem to sell. How they conduct business is screwy to say the least. Houses are go from "all bids being considered" to back on the market with a buy it now price, back to an auction etc. It does not seem to be a true action if you ask me. Ebay has it right, why can't they? I understand they want to get the maximum for the property but really. Just have a reserve and go from there.
If you search here you will find other complaints and comments I am sure
For me, the bidding was a run-around, but, that was it. After I finally met the reserve (and actually "won" the auction). The rest (closing process) was as easier than falling down.
Best I can tell? If you understand that they don't really care if it's a house, a pile of rubble, or a gold mine. And, you follow their instructions in the time frame allotted? You won't have any trouble.
But, if you need some assurance or warranty or even info.. that pipes are not frozen, electricity, roof doesn't leak, etc? You're in for a mess. They just don't know and just don't care.
As for how the auction process works? A person bids or offers $100k and gets turned down. Only to see the house back up for sale at $85k. Then offer $75k and get turned down, only to see the house back up for sale at $70k?
I think the realtor is getting a monthly/weekly fee to maintain the property. They are probably working a system to where they make the most they can maintaining it. And, given a time when the house MUST be sold. When that time rolls around, they dump the house and accept whatever offer there is.
(realtor is making more money maintaining the house than the commission on the sale). Yet, they really aren't maintaining it much at all.
The house I bought was in AR. The realtor responsible had 30 or so "hubzu" properties in the same area, but, she was in GA. The company that was in charge of cleaning it up and taking the pictures was out of TX. The people that actually cleaned the house and took the pictures was local, hired by the company in TX.
There's a bunch of floating around. When all that is used up, the house MUST be sold or somebody isn't doing their job. When that time comes, these properties are dumped right then.
At least that's what I think, based on seeing the same thing before for a different commodity.
Google is your friend. search "hubzu review"
Keep the bad reviews of Hubzu coming everyone!!!! The worse their reputation gets... the less competition I have!!!! Don't hold back.. If you've had a bad experience with Hubzu, scream it from the roof tops!
My last deal was a property from Hubzu. I admit, they are not the easiest to deal with, especially according to my title guy. They do absolutely everything last minute in regards to paperwork and communication. It's only the day of closing that we found out who the key players were on their end, but it was already too late. We had to delay the closing by a week (not too bad).
Extremely important and can't be overstated - always, always use your own local title company when dealing with them - never theirs. Thank God I did on this deal. The extra money in closing was more than worth it. We did close about a week behind schedule, but it could've been a lot worse.
Despite the experience, I would do another deal with them. In the end, the numbers worked out well.
I purchased 3 properties form Hubzu in Sept, 2015. Royal PITA for me, and here's why- I normally pay cash, then borrow against them shortly thereafter. I made the monumental mistake of using their title company. Buying 3 houses in 3 weeks killed my cash flow, so time to borrow on the 1st property... not. Their title company ADMITS to being 6 weeks behind, but that's a joke. I just got the deed for the LAST property this week! 14 weeks! It took me a month to get them to file the deed, calling and emailing multiple times every day.
Would I buy through them again? Yes, but with my own title company. With cash deals, you can close in less than 2 weeks, and as stated before, you don't need to get your realtor involved, so, easy money for them. The closers will answer almost every time, even on weekends and evenings in some cases, but they're hard to understand, so each call is like trying to order food in a foreign country- you're never quite sure if you're gonna get what you asked for!
As a flipper, I have to deal with them if they have the house. And after all this time, I'm comfortable with their crazy bidding system. I've bid on the same house 5 auctions in a row, and I've gotten houses the 1st time I bid, even when reserve wasn't met (they emailed a counter, and I accepted). I don't believe they rig it at all.
Yeah! Their Title Company is worthless. I thinks it's Premier for California properties. I never get a counter, they usually put them back on the market next day. That's good to hear that. You must been close to the reserve. Hope you got some good deals.
I purchased a house from Hubzu in August. Viewed the property before hand with my realtor, we bid online, we won, contracts were sent. The contract stated we must close in 35 days. The communication was a little flakey at times, you need to follow up with them every single day to keep things moving.
We closed in 35 days with conventional financing and my own title company/lawyer. It was important to keep everyone on track with the timeline or we would have not closed.
But it was not a bad experience, I got a great deal and would do it again. Oh and as far as Altisource preserving and winterizing the property, there was not a pipe in the house that wasn't busted, but I knew that going in. New plumbing and boiler was my biggest expense.
I purchased a property from Hubzu in Oct and handled the closing and wire transfers (Chase Quickpay) all through my phone; didn't have to leave my office. The easiest closing I've had over the ten years I've been doing this. Great property and easy process.
So, I agree @nick g. Same thing, plumbing my biggest issue.
@Steve Wilson ... awesome post! Same process for me; wife and I closed on a Hubzu duplex about a month ago. Only difference from your experience was we financed the property which made it a little more difficult, but we used a lender who knew Hubzu and was used to working with them. Lots of posts out there about how terrrrrrible Hubzu is but as far as I can tell most, if not all, of those posts are people who never closed.
@Steve Wilson Hi Steve, can you tell me which bank you used? I think using a bank that has worked with hubzu would make me feel better. I want to put in a bid but afraid of the "no financing contingency".
Sorry. I meant @Steven Andrews @Steve Wilson Hi Steve, can you tell me which bank you used? I think using a bank that has worked with hubzu would make me feel better. I want to put in a bid but afraid of the "no financing contingency". Thanks!
I bought a house on hubzu. It was a short sale. After a couple of month closed on it. Flipped the house and made some money. Only bad thing is they have a buyers fee, just take that in consideration. I was able to preview the house before bidding.
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