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.
Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
12y
All things associated with Ocwen/Altisource/Go Homing/Hubzu are out sourced to India. My suggestion if you are the winning bidder is to elect the option of choosing your own escrow. Yes, you have to pay more in escrow fees, but dealing with their outsourced escrow/closing in India is a nightmare. Well worth paying the additional fees to use your own local escrow/closing.
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
12y
I have never used Hubzu but there is a property I am interested, all boarded up and no access.
Called the listing agent and he told me the highest bid is 62k, but on Hubzu.com it says 26K being highest. I assume that means he has bids that has not yet been uploaded? He told me it's best to send him the info and he uploads it as it requires a contract.
If you want to do it yourself where do you get the contract? The listing only show "SAMPLE" contracts. Is an agent required? Is there an advantage in using an agent? Seem like with an agent who might hold all offers and upload it once you are mostly in the dark? Do you need a purchase contract prior to placing bids?
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
12y
"We’re sorry! www.hubzu.com is currently down.
Please send any questions to [email protected]
and we’ll let you know as soon as we’re back up and running."
Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
12y
An agent is NOT required. There is no paper work to submit your bid. You register online and bid. Only after you win the bid do you have paper work, which they will send to you. Not sure what the agent is trying pull, other than protecting an offer he's got in, or trying to get commission from working with you as an agent.
Real Estate Investor · Kirkland, WA · Member since 2012 · 480 posts · 116 votes
12y
We bought a Hubzu property before. Well, it wasn't actually "on" Hubzu at the time because they moved it over to the MLS. I worked with a realtor on it. As I recall, we had to use their purchase and sales agreement paperwork and there were some frustrations working with them. If they are in India, that explains a lot. It was the first time for my realtor so there was some confusion. There's also some extra fees and I believe daily charges if you don't close on the specified date. It was also around the end of year and since a lot of people were on vacations and banks were closed more than usual, I think we went past that date but they exended the date so there were no exra charges.
Real Estate Investor · Lewiston, ME · Member since 2014 · 15 posts · 0 votes
12y
I've used Hubzu multiple times. It a most definite they throw properties on the market with title issues. Almost to the point of not being able to handle the caseload. But be sure to have your attorney do a thorough title search. My experience was there was much confusion with who handles what with in that company. If you can get it all ironed out you can get some pretty good deals. I would say not a scam because I canceled deals and did receive refunds with substantial deposits.
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
12y
Someone mentioned that you do NOT have to have an agent to make a bid. I think this is correct. And I really don't like it, especially with it being an auction type of format. Any 10 year old kid from Nigeria could log on and make an offer and run the price up.
Someone mentioned that you do NOT have to have an agent to make a bid. I think this is correct. And I really don't like it, especially with it being an auction type of format. Any 10 year old kid from Nigeria could log on and make an offer and run the price up.
Then if they do, Hubzu will see it fall through then just re-list it. It wastes time.
Someone mentioned that you do NOT have to have an agent to make a bid. I think this is correct. And I really don't like it, especially with it being an auction type of format. Any 10 year old kid from Nigeria could log on and make an offer and run the price up.
Most real auction type sites like the online foreclosure sites, auction.com, homesearch.com etc... all allow end buyers to participate.
Hubzu.com is set up like an auction site but in reality it is not right? Winning a bid on Hubzu is like the beginning of a long lengthy process?
I don't really mind working with an agent just that the agent but I am not sure why I would do that if it means filling in a traditional contract, fax to him, then he re-enters the data in a few days.
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
12y
Another question.
If you won a bid and execute a contract, is there an inspection?
I read in some threads where it mentioned an inspection where the buyer may back out.
but if I hit the Place Bid button I got this warning which seems to suggest there is no inspection.
This sale is not contingent upon financing. If you require a loan and do not qualify for one after the contract is executed, you could lose your earnest money deposit.
On most properties, Sellers only consider cash or conventional financing. Please check the property's detail page for information.
Inspect these properties before bidding. They are sold as-is, and Sellers do not renegotiate terms. Auction sales (including "Own It Now") have no inspection contingency period.
Sellers may add an "Own It Now" option on or before the third day the listing is posted. This option will remain until the reserve is met or until a buyer chooses "Own It Now."
Acceptance of your bid is not final until the Seller signs and returns the Purchase and Sale Agreement to you.
The subject property is all boarded up and no access, and even the listing agent has no knowledge of the conditions inside.
property manager · Las Vegas, NV · Member since 2012 · 502 posts · 171 votes
12y
I was just forced by Ocwen to put a Las Vegas property on hubzu.com. Already has offers but they want to see where it runs up to in price. In our case, the property can be inspected because my seller has to approve the sale terms and can counter adding in inspections and review of the tenants lease. They must be having success with the auctions driving the prices higher and thus the requirement.
Rental Property Investor · Bend, OR · Member since 2013 · 81 posts · 24 votes
12y
@Sam Leon They will send you a sales agreement if your offer is accepted. You will need to read their contract carefully to see if they will allow you to have an inspection or financing contingency. I have only seen their sample contract which looks like it can be written up either way.
Investor · Grand Rapids, MI · Member since 2013 · 12 posts · 3 votes
12y
I've posted on here before about my positive experiences with Hubzu - and my overall comfort level with the auction process, explaining every detail, contracts, inspections, and bringing these properties to a timely close. I love helping people with these properties as they treat me differently than normal investors who want things their way or the highway.. well with Hubzu, it is their rules or the highway, plain and simple, and I understand their language.
Continuing to help Michigan buyers EVERY DAY. Do not hesitate to find me online and reach out with questions, I love helping people reach their goals!
Contractor · Easton, PA · Member since 2013 · 152 posts · 58 votes
12y
I have been buying properties for a bit over a year now and my only hubzu deal is the best transaction I have made. I am glad they are clueless, I still search out their homes regularly .
SFR Investor · Grand Rapids, MN · Member since 2014 · 12 posts · 0 votes
12y
I was the highest bid on a Hubzu auction but did not meet the reserve. I still want to negotiate but they seem to only come back with the reserve price which is a bit over my budget for significant cash flow given that I haven't even seen the inside of the home. Any tips on how to negotiate with these folks?
Investor · Grand Rapids, MI · Member since 2013 · 12 posts · 3 votes
12y
You see a lot of people complain about Hubzu. I have successfully closed on 7 properties on Hubzu, both for investors and primary residence. I've closed timely on ever auction I've won. Why/how? I thoroughly researched Hubzu, understand the purchase agreement and closing process, and educate my buyers on what to expect.
I get calls everyday from buyers all over the country, their realtors try to talk them out of Hubzu because they are not willing to roll up their sleeves and understand the process. Self inflicted issues and complaints.
Hubzu is not a scam. You have limited competition, thanks to all the bitter people that complain about them. If these people took the time to understand how the system works, they would not be complaining. In my opinion, Hubzu does a poor job marketing their properties, they rarely even hit the MLS in Michigan. It is my understanding that Hubzu contracts with banks/lending institutions to market, sell, and facilitate getting rid of their distressed properties. Banks HATE dealing with foreclosed properties, and Hubzu helps take the burden off of them. It is my understanding that Hubzu makes their money based on the 4.5% buyers premium that is added to the winning auction price. In my opinion, Hubzu is a brilliant company and I would invest in them if they sold shares.
Downingtown, PA · Member since 2013 · 8 posts · 4 votes
12y
Okay, I'm looking at this thread because a property is on Hubzu that I like. Is the general consensus that unless the reserve is met they will just re-list the property? Will the seller ultimately lower the reserve or just put the property on the MLS?
Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
12y
I have looked at homes from this website. One house was way off on the price and not worth it to us, but still sold. The other house we looked at was an excellent deal and we were so upset as the day we looked at it they took it off the market and we couldn't put in an offer. I know of an investor that has bought a couple of homes off of this website. I don't like the 4.5% fee that they tack on the end though.
Downingtown, PA · Member since 2013 · 8 posts · 4 votes
12y
Here's another question.
The property I'm looking at says "Seller considers conventional financing." I understand that to mean a conforming loan. Does anyone know if they (hubzu or the seller) would take a 203k? The property needs a lot of work and I'm concerned about the conventional loan appraisal. I imagine the seller wouldn't care as long as they get paid.
Investor · Dallas, TX · Member since 2014 · 76 posts · 18 votes
12y
Hubzu might be fine (minus the poor customer service mentioned) but they sure seem ok letting fraudulent sales
I won an auction and the seller - a licensed agent in Minnesota - just reposted the auction and opened it for another five days to try to get a higher price.
If anyone has had similar experiences, please message me.
Newington, CT · Member since 2015 · 4 posts · 0 votes
11y
Hubuz, Altisource and Real Home Services and Solutions (RHSS) are not licensed to sell real estate in the State of CT, even though their site states that RHSS is a licensed broker Any CT licensee that is reprsenting Altisource, HUBZU, Ocwen or RHSS is violating licensing law. Only the true owner of a property may sign a listing agreement and all commission must be paid directly to a licensed CT broker...not to an unlicensed entity. Know the law CT licensees. It's your license that's on the line. Is it worth it