Investor · New Haven, CT · Member since 2012 · 285 posts · 175 votes
Has anyone out there used the REO auction site HUBZU to purchase a property? They like like they have great deals but I haven't been able to get anyone from their customer service on the phone so I'm concerned that this may be a scam site.
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
13y
One tip when dealing with Hubzu: Always choose the option to select your own title company, even when it means forgoing free title insurance.
I don't trust their title insurance, their closing agent, or their practices.
When I got an accepted offer on a property, and inspections revealed an extra 20K worth of needed foundation repairs, I sent them correspondence declining to close at the contracted price, within the time limit, and offered 30K less. They came back with a price reduction of 4K and wouldn't drop any lower. I cancelled the transaction and requested they sign a release of my deposit, (which was held at my attorney). They ignored my request for 2 weeks - they didn't refuse, they just ignored me. I had my attorney threaten legal action and they signed off on the release of my deposit within hours.
Orlando, FL · Member since 2013 · 2 posts · 0 votes
13y
Hello I just won a bid with hubzu and they sending me the contract and asking 13,000 for earnest money. I just wonder if for any reason my loans didn't come through can I get my earnest money back or no? Thank you
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
13y
Jillian Chao, see my post just above yours. Be sure you have selected the option to use your own title company. When that happens, you send the EMD to that company. If the transaction falls apart, you have more leverage with your own title co than with theirs. If you have a relationship with that title company, and the transaction falls apart, the title co will work on your behalf to get your funds release signed off on. If you send money to the people at Hubzu, in my opinion, they will never release it.
Orlando, FL · Member since 2013 · 2 posts · 0 votes
13y
Thank you so much for your reply, Im really like the house but really scare and nerves to work with hubzu, I never have to send out a big earnest money like this and don't know if I can get it back or not. For your experience, what should I do? Go for it or just let it go? Please help me. So if I do request to use my own title company, if anything go wrong with my loans, I can get my earnest money back right ? It this ever happens to you or anyone you know?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
13y
As long as your bid contains 1) an inspection period contingency, and 2) a financing contingency, and you use yout title co. You should be protected. If you're not sure, buy an hour of an attorney's time.
Home I wanted week1, starting bid 45k. I bid, reserve not met. Standard email telling me to keep an eye out for it to be reposted.
Week 2: starting bid 47k. I bid. Same thing.
Week 3: starting bid 50k. Nobody bids.
Week 4: starting bid 45k.
Will this just continue until the bank asset manager get's the # they want? Are there any success stories where the bank finally accepts below the unknown reserve?
Johnston, RI · Member since 2013 · 1 post · 3 votes
12y
Hello - I don't know if this is the correct forum but I wanted to thank Ann Bellamy for her help. You see, I have followed this site for quite some time but have never posted. I did however have questions regarding Hubzu. Ann took my phone call and was gracious enough to answer my questions.
Thank you all for your help and shared professional knowledge.
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
12y
I've checked out Hubzu recently because a property that was 4 houses down from where I lived was listed on there. I'll be curious as to what happens to it.
House Flipper · East Stroudsburg, PA · Member since 2013 · 1k+ posts · 205 votes
12y
We have acquired several properties from them, they are somewhat difficult to work with as they are not always available and don't return phone calls quickly, however they do bring the deal to closing without any surprises. Prepare for a time lag between buying and closing.
Real Estate Investor · Miami, FL · Member since 2013 · 122 posts · 51 votes
12y
After reading all the postings, seems that if you take precautions and have patience, a good deal might be the outcome. I plan to bid in one property for rehab they have listed on my area, auction ends tonight.
jacksonville, FL · Member since 2013 · 2 posts · 0 votes
12y
They are completely clueless. The ugly crap house in my neighborhood is up through hubzu
The losers who lived in the house previously had a tarp over a tree puncture on the roof for over a year and the house is completely trashed. Who ever "prepared" the house for auction took the tarp off exposing the large hole to the elements. I sent Hubzu an email letting them know someone took the tarp off the roof. I got a one line response that said "the bank can do what they want with the home". The buy it now price was/is 210,000
1st auction starting bid 146,000 no bids
2nd auction starting bid 159,000. no bids
3rd auction starting bid 149,000 no bids
4th auction starting bid 146,000 no bids
5th auction starting bid 139,000 no bids
Wonder why well it is only worth at most 120,000 due to the condition.
Now it is no time limit sale. I put in an offer for 115,000 they came back with a counter offer of 196,000. WHAT THE HELL.
In doing comps i priced the house out at ~200,000 AFTER renovations and budgeted 60,000 for materials(doing the work myself).
They obviously never had a single qualified person out to the house to give them an pricing opinion. 200,000 is the average sale price in the neighborhood for houses that are in good shape. This house needs 2,400sqft of flooring, paint, and ceiling retexturing. Kitchen and all 3 bathrooms gutted and in groung pool torn out.
Bunch of buffoons but maybe after the house sits and rots for a couple more months they will take a reasonable offer and my offer goes down when the ceiling caves in from the water pouring through the hole in the roof thank god its getting cooler out so the house wont fill with mold as fast
Fort Worth, TX · Member since 2013 · 1 post · 1 vote
12y
As many have stated, Hubzu is NOT an AUCTION site...they are a third party rep for sellers, who artificially set low "starting bids" to generate interest, then allow the seller to set a reserve that will NEVER be met, so they can cherry pick the best offer without any culpability to actually AUCTION the property....it's an offer generator for the sellers, but they're also hitting the sellers, because ALTISOURCE (Hubzu) manages the properties and is making money both ways, so they have no incentive to actually try to move the properties.
I'm a standalone buyer, and am now having issues getting realtors to work with me, since no one wants to deal with Hubzu and make 1000 bids and track "auctions" to completion over and over, just to get an outrageous counter offer, with NO MEANS OF NEGOTIATION...
I see it as a total BAIT AND SWITCH....bait you in with a low "starting bid", don't reveal the "reserve", and allow the "seller" that you can't contact to make one way "counter offers", yet you have to re-bid every time, thus maximizing their potential to stick you for more cash.
I've also heard from more than one party that they see shady bids that come in, and seem to only pad the money for Hubzu...nice that there's no way to confirm that the actual bids come from anyone that actually exists...
SFR Investor · Dallas, TX · Member since 2011 · 604 posts · 243 votes
12y
You don't have to have your realtor involved to make bid, my 'account" has her listed as my agent, so she gets notified when I make a bid, but doesn't have to actually do anything herself.
I am in the process of buying a short sale from hubzu now, hopefully anyway. My offer was a few thousand over the 'reserve' however the bank has never approved it.
My problem is the listings are deceptive. This particular house only had a picture of the front of the house, in a great neighborhood, and the listing shows it has a pool. It doesn't tell you the pool has to be taken out because one end is 3' out of the ground (has a deep end and obviously left the pool without water). The day I went to look at it I was sitting talking to my realtor (she and her husband are old friends), while we talked we saw at least 3 other appointments show up to see the house (it is occupied).
The house wouldn't come close to traditional financing, in fact getting any liability insurance until the pool is removed is a little challenging even for me.
We are scheduled to close the 27th, but the bank still hasn't approved the short sale, so I know it will end up being approved or turned down until January,,and I am refusing to get the engineers report on the foundation (already have a quote) until it is approved.
It is a hassle, but many times those are the best deals,,I had a short sale two years ago (not hubzu) that took over 3 months, but it is still one of my best deals.
Why should Hubzu tell you what the reserve is? And that is the reason the seller went through Hubzu; they don't want to deal with buyers who will low ball them. Why should you be concerned about what other people are bidding? Bid what you are willing to pay and if accepted closed the deal or move on to the next one.
Perry Hall, MD · Member since 2013 · 32 posts · 5 votes
12y
Currently bidding on a Hubzu property and am below reserve. I've reached out to a rep regarding making a deal on the listing but their response was " If the Seller chooses to negotiate, they will be in touch". I feel like I would be better off contacting the bank and going from there. Has anyone had a similar experience?
Perry Hall, MD · Member since 2013 · 32 posts · 5 votes
12y
I've done some research and see that they were asking a semi reasonable price for it when it was for sale. I just don't want to go that high. You think waiting it out isn't a good idea?
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
You could wait to try to save a few pennies, and someone else will buy at a fair price. If you could have bought it at your price how much your profit be.
Perry Hall, MD · Member since 2013 · 32 posts · 5 votes
12y
My price is very fair because the house is occupied and if my bid is accepted, removing existing tenant is on me. Also, the basement is unfinished and I haven't even seen the inside of the house. I don't know what kind of profit I'm looking at because I don't know what the house needs. I'm just not comfortable paying more when I don't know what's going on inside.