Has anyone ever dealt with this auction site? They have several listings in my area that are seriously below market value, but few guys seem to bid on the properties and then after the auction closes with the reserve not met it gets reposted. One of the properties I'm interested in is a foreclosure in my neighborhood and has been reposted at least 8 times. Anyone with first hand knowlege? I came upon the site by chance through someone else, but have never seen any advertising.
Like any other auction site, they set the opening bid and reserve based on what the seller tells them.
Your own research will help you determine the property's fair market value in it's current condition as well as the repair costs. If the total of those two leaves room for profit, that's what you're looking for. If the opening bid is above that total, walk away.
I thought there was a way to determine the reserve price, but I haven't looked at Hubzu since early this year.
Thanks, from what I can see it looks like a killer investment. I can't seem to see what the reserve is, but they have a buy it now option that is about 70k below market value. I've just never dealt with anything like this.
You gotta meet the reserve minimum, even if you win the bid. Auction site is legit though, I just purchased a property in Orange County via Hubzu. I won the auction but didn't meet the minimum. Checked and rechecked the numbers to confirm if the minimum is still a worthwhile investment and it did. Everything checks out I am closing escrow on this property tomorrow.
Now there are still people living in the property and I will be starting a eviction process but that's a whole another story...
Can you tell me anything about the closing process and fees?
I have had success with purchasing on Hubzu a few times for myself (I am the Buyer's Agent and the Buyer). They relist and relist, sometimes increasing the price, sometimes decreasing the price. I keep a record of all changes, high bids, and high bid initials (of the bidder, it lists first and last initial of the online username) so I can be aware of my competition and what their max has been in the past. If possible, I recommend having a professional home inspection before you bid, they are sold as is, without an inspection contingency.
I have seen them list REO's that are still within the right of redemption period, so be careful on that front. The cool thing is they often have them listed as occupied when they are vacant, listing that it will be the burden of the purchaser to remove the occupant, scaring off the competition. They relist so many times that often the occupant moves, but they don't update. I don't think it is uncommon for them to have title issues, and they are slow to resolve. For investors, this ties up your money for longer than you would hope without any further benefit. They don't reduce the price or pay a per diem for the delay to offset your money being tied up.
@Kevin Reid , You are not liable for the purchase of the property or need to pay any fees if the reserved minimum is not met, after you win the auction. You'll get an email from asset manager or bank confirming if you want to pay the reserve minimum (if its not met(. Then it goes through escrow, and I had to pay about 2.14% of purchase price for deposit.
The seller paid all the costs of the auction fees, I only paid my portion of the title fees. That's about it, and escrow scheduled to close tomorrow.
I forgot to mention, just do your due diligence as you normally would. For my property, I couldn't go inside or have an inspection done, but I tried to cover all the other bases, such as clear title, driving by property, review all the docs and have other professionals (agents, brokers, etc) double check the docs.
Thanks again, they are willing to give me a code to the house, but I have to be pre approved first. Since this is the only property I am looking at I didn't want to go through all that until I made up my mind, but I may do it just for curiousity.
check code enforcement for violations etc... Found a great buy unfortunately had $66,850 of violations building up daily! Carpe diem.
@Kevin Reid I paid a technology fee and other standard fees. I would recommend using a Title company of your choice. My experience was very frustrating with them getting documents correct for closing and delays on filing after closing.
I have just gotten a second auction removed from Hubzu for an encumbrance foreclosed modular home that sits in my yard. Litton Loan/Ocwen has had 6 yrs to move it. They tried to get me to sell them land under it, so they could keep it there. I refused. I moved to the country for privacy.
Ocwen knows the land is mine-I got the local realtor they sent out to sell it (in my yard) to get their land surveyed. It showed their land to be adjacent woods , agreeing with my plat.. So since they know I'll run off anyone they send out, they put a misrepresentative sleazy auction on Hubzu, so I could have come home to strangers living in my yard, thinking the 5 acres they "bought" is my yard instead of the adjacent woods, that the house was supposed to have been built on.
How sneaky! First auction this Nov-No viewing, no contingencies, DO NOT DISTURB OCCUPANT, buyer responsible for taking possession of property (running off the real owner, me!) I got that auction removed, and the agent assured me it would be relisted land only, and sent a quote from the Ocwen counsel, saying they were under no obligation to move the house, and the land could be listed alone. The agent, who seems to be concerned and ethical, interpreted that to mean they are giving up the house to me, which is fine. No, it just means they know they got caught. I'm sure they didn't intend for him to show me their quote. They admitted the house is on my property and that they can't legally sell it, but it seems they are determined to sell, legal or not. I see that they have resurveyed the property line bordering mine within the last couple mos. and saw that it agreed with the other one they had done. They saw they can't sell the house, but decided to try to do it behind my back, anyway.
2nd illegal auction (last week) A normal looking auction for the land plus the house in my yard, with photos (of my land) I preferred the sleazy one with lots of red flag. Also, all over MLS at the same time with 2 different prices. Got this one stopped, and again I am told that it will be relisted for land only, and that no one will trespass. This time they put up a sign, and the guy actually did call to ask where he should put the sign. I noticed when he left it says "House for sell."
I spent today putting up a twine fence with a whole roll of flagging tape all around the house, with 15 posted signs and a huge not for sale sign, a no clear title sign, etc. This weekend I'll be replacing that with barb wire. My sheriff's dept. says this is a civil matter-get a lawyer, but I don't feel like shelling out thousands for a lawyer, although I may have to. I do have title insurance, but I feel they'll just want me to sell them some land. Lawyer charged $150 to send a letter to Ocwen yrs. ago, which they ignored, as they did my correspondence. The deputy did say they would arrest anyone trespassing, so I'll start taking them up on that. I have a junked car I may park in front of the door, so no furniture can be moved in.
So, should you feel confident dealing with Hubzu, or Altisource, or Ocwen. I say NOOOOO!
I would never buy property sight unseen. I would insist on a plat and walk every inch. I would zoom in on aerial tax assessor maps. When looking at the tax assessor online info., the only way anyone would know that the house I mention is on the wrong land is through the aerial maps. And as mentioned, don't get a title search done in India.
Update: I had to get Hubzu to remove yet a 3rd set of listings for the encumbrance house on my land. This time instead of listing on the Hubzu site, they put them on lesser known sites that require credit card numbers for see details:Homes.com, RealtyStore, foreclosure.com. Their agent I had corresponded with to remove the previous auctions said he had no control over those sites. I yelled at Hubzu over the phone and got these ads removed.
Odd coincidence?: 2 days after sending e-mails to an Altisource worker (they are with Ocwen/Hubzu), with a foreign accent, I was hacked by an Indian microsoft impersonator. That was after their 2nd set of ads. Then 1 day after I got the 3rd set of ads removed, the hacker called back. Of course I had learned my lesson and hung up.
Update; After I had a fourth listing, this one on Hubzu, showing again, interior and exterior pics. of the house, I am glad to report that it is finally listed land only.
Update: A fourth fraudulent listing was posted on Hubzu, again with pics. of inside and out of the house. This time, after again promising to fix it, they FINALLY did. It now reflects land only, in description and photos. I still do a daily search of the address to make sure it stays that way.
I have dealt with HUBZU for a lot of my buys recently. Had nothing but great results.
ALTISOURCE is awesome to work with and is simple.
Transferring the funds to everything else was nice and smooth.
Yes it can be stressful but the process is fast.
Is it my understanding that you own the property that the trailer ? If so, how did it get there ?
All these agents and asset managers are not out to dupe you as agents are just going to rely on the information given.
My suggestion is to try to turn this into a positive and purchase the trailer. You no doubt have the leverage to get a great deal
Original owner put a modular home on sister's inherited land (around 2006), instead of his, which is a 5 acre tract of land adjacent to mine. Then sister went bankrupt, and I bought her 10 acres and house, where I reside, from Fannie Mae around 2008. I told the family, who were easy to get along with, in the modular home that they could stay until they were able to move the house to the correct property, but they would need to pay me just enough to cover taxes for their yard. But before the tax bill came, they'd claimed bankruptcy, and moved within a year.
I offered to buy the modular home from Litton Loan (later purchased by Ocwen) just to wrap this up, when they began trying to get me to sell them the land under. They said they couldn't sell the home without owning the land under it. I declined their offers. They did a title claim. A lawyer doing their claim called to ask what I wanted done with the house. I said that I wanted it moved,(That was the wish of my terminally ill husband.) The lawyer said fine, and some heavy equipment came out, power pole was moved over and some holes dug. Worker said house would be moved by end of Dec. 2013, after tests were done. i assume perk tests. Holes stay full of water. Work abruptly stopped.
Late 2015, notes show up on the door saying winterized by Altisource, dispossessory notice was delivered for the bankrupted lady that moved in 2010 (although it's obvious that no one's been in the house in some time), lockbox put on. Within a week, a tax sale notice goes up on the door. I went to the courthouse and bought the redeemable tax deed, in an effort to wrap this up. So yes, I may get a good deal. I also see new surveyor marks which verify the property line.
Then the first listing went up. The agent, himself, does seem agreeable, although frustrated with his co-workers that are persistently not doing what he asks. He sent a quote from Ocwen saying that the house wasn't theirs and to list as land only. Still the house listings came. He connected me with Altisource ombudswoman. She said, " according to my research, we don't own that house." I said to leave it or move it, but they can't sell it where it is. She told Altisource to list land only. Still the misrepresentative listings came. Now the listings are finally corrected.
Closed on a Hubzu property last month; it was not occupied so we could do all the necessary inspections which made it easier. Also, we financed the property and chose a lender who had experience with Hubzu which made all the difference. The lender didn't need to do anything special, he just needed t o follow up with them on a daily basis to make sure the process was moving along the way it should. The employees at OCWEN were good people, easy to work with but sometimes lacked the necessary communication skills which made it a little harder. Overall, good process but ensure your lender (if you have one) knows what they are getting themselves into. Same as above, the seller paid for title insurance and closing costs except the portion we had to pay for our loan and the $299 technology fee.
Steven Andrews. I have seen many people say it's best to get your own Title Company that it is worth the costs, you are the first buyer stating satisfaction with the seller's title company.
Does the Seller pay R.E. commissions for both Buyer and Seller Agents?
What exactly does the Buyer's premium pay for?
I am trying to close on a hubzu auction property now. The altisource people assigned to help close the deal have been nothing but clueless and incompetent. I do not know if this is because they have little real estate experience or if they are all foreigners and do not understand US property law and trust law basics. As an attorney by day, I knew better than to use their preferred title company that shares ownership with hubzu and altisource. I have been repeatedly requesting documentation to paper up this transaction showing altisource has the power and authority to act on behalf of the trust that owns the property with little success.
Seller is now 6 days in breach of contract and claiming they have no paperwork to provide us (even though they have claimed this before) although I know for a fact documentation exists as they have provided another trust instrument. Unfortunately the trust instrument provided was for a different but related trust. No legitimate title company in Texas would provide title insurance under present conditions.
Borderline ready to sue hubzu usa, inc. (delaware company), arns, inc. (texas company) and altisource (luxembourg company) for various types of fraud and violations of the Texas Deceptive Trade Practices Act.
I do feel your pain with your dealings with Altisource. The main issue is trying to coordinate closings in 50 states which has 50 different ways of handling property transfers while employing people from overseas who do not have a full grasp of the language and culture
Who was their assigned closer ? Excel title Group ? The reality is I have done a couple with Hubzu and used their title company to alleviate issues such as these. I am sure you know that there are only 4 major title insurance underwriters in the US so there is a good chance your title company and theirs' ultimately have the same underwriter
Being an Attorney I can understand your requests for information regarding the trust but ultimately it is the Title companies job to procure the documents and I would guess that would be an unusual request from a buyer and they probably just do not have a clue as how to handle it. As far as suing them, I am sure you read their contract which releases them from any and all liability in 52 different ways. Patience and rolling with the punches are the key to a successful closing.
I am carrying the water for the title company right now. if fraud is involved the contract is void and inapplicable. the fact that they have closings in 50 states is not applicable here as this is a universal issue of proving they have authority to sell the home. I have a poa in hand, but without the trust instrument, the poa is essentially worthless
My suggestion would be to contact their title company as they regularly close the transactions and should have the required documentation instead of Altisource. If it is Excel Title I can provide you with a contact