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.
Does anyone have any experience with HUBZU.com
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.
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.
Does anyone have any experience with HUBZU.com
The are violating CT licensing law...HUBZU nor Altisource nor Real Home Services & Solutions, OCWEN are licensed brokers in the state of CT. They are using CT licensees in an illegal manner and putting their licenses at risk. Violating the law is a serious matter that can destroy a Connecticut licensees career.
My experience has been they list a property really low to get people interested but then the price gets driven up quickly. Last one I offered on went above my highest price considering rehab costs and ARV.
HUBZU will not allow you to make an offer below the minimum acceptable offer, aka. the listing price. I think this is bull****
Just my 2 cents.
Buyers should be allowed to make their best offer even if it is lower than the listing price.
Be very careful of HUBZU.COM and their business dealings and practices.
We are currently working on a deal with them and I am ready to pull my hair out.
Last week a property came to auction in FL. We do our due-diligence first and have an inspection done of the property. We then determined that we would like to bid on said property. MLS listed this property in the high $200's. We know that with a little rehab (approx $70,000) we would have a property worth $400-450,000.
Opening bid was $175,000. We waited til 2 hrs prior to closing of auction and bid $178,000 (using our realtor- which you DO NOT have to do - however, our realtor is part of our 'team' and we use her in most transactions). We did not meet reserve (which we presumed we would not). 2 hrs later we were sent an email offering us an approved seller purchase price of $237,000 (+4.5% buyers premium & $299 tech fee) - they gave us 24 hrs to make decision.
At this point we immediately ordered a 'desktop appraisal' - which gave us a value to the house (as is condition - which included the interior removed by angry homeowners - kitchen, baths, all lighting, etc - it was gutted - but not damaged in the process) - the appraisal came in at $300,000. We notified HUDZU we would accept their $237,000.
They sent a congrats letter and started docs. BUT - the docs gave a purchase of $238,000 (plus that added to the 4.5% buyers prem) - we called and tried to explain that this is NOT correct. Of course, the call center in India is not trained to handle these kinds of problems - nor do they care. After repeated un-returned calls from supervisors for the next 24 hrs we were sent a notice that if we did not sign and return our paperwork immediately the property would go back to auction. I told them that I will NOT concede to their 'Hostage Demands' and that they better get their ducks in order.
We then got an email from an 'higher-up' who told us that they will go back to the seller and see if they will correct the problem. Excuse me? You offer me a price of $237, which I accept - you try to pad the offer (hoping I won't catch it) - I do and then you tell me you will go back to the seller and SEE if THEY will correct the problem> ??
Currently we are waiting on said seller to respond and to 'correct the problem' - whether this sale ever closes will be anyone's guess. But I do know that they are pushing us to use THEIR title co - we will not be doing that - as I do not believe anyone in this company has the best interest of the consumer and all I see is a nightmare down the road.
If it weren't for the fact that I REALLY want this property - I would have walked on this whole fiasco.
And to add fuel to the fire - after talking with another realtor in the area - they too had a business deal go awry with this company. They walked - as their pricing difference was $8000. So - they are at 100% negative scoring with me at the moment. Will I ever use them again - it will be VERY questionable indeed.
Once Again - BUYER BEWARE with these people
Thanks for the feedback @Robin Reyes. I had also considered bidding on a Hubzu property in FL, but was very leery of their business practices. My realtor said she had been involved in 1 transaction with them and it had gone well, even speaking with the seller's attorney on the phone (not in India), but that was just 1 transaction.
Buyer beware indeed.
I have followed some properties on HUBZU over the last few months. Never bid or bought. I would only comment that it appears it is not just REO type property being listed. They do have an obligation to get the highest price for the property for their client. I think that is why the reserve seems to be set pretty close to market rate and then they see what it brings for auction. The reserve is not met the first time out of course. Then they relist have a buy it now price maybe 10-15% market and still have a reserve. The bargains seem few and far between (but that may vary on the market) as for their reserve and buy it now price, it frequently seems that it has no relation to the reality of the property condition. In other words no one has actually looked to see that the interior has been trashed. Also I have seen property in person and there is a pool but the listing will say no pool. Just what are the comps and lets set the reserve at 10% below market.
Just some thoughts
I had a bad experience following and bidding on a property. I was never contacted by the listing Realtor whose phone goes automatically to voice mail. I used my local Realtor to see properties just to see that the pics and descriptions do not tell the full story. Eventually I did bid the lowest amount available before seeing the property and placed another higher bid after I did see the property. Unfortunately I was the highest bidder of only 3 (2 were my mine) bids on the property. The listing disappeared. Normally it would be under review or contract after a winning sale. I was emailed that the bank took another offer but yet I was the highest by $600. I'm still not sure of their tactics. I had a cash offer with proof of funds attached.
My deposit was low but that was because I wasn't too sure about the site in the first place. Something fishy is going on and no one from the site can give you information on the process or seller. I want to know why I did not get the property so that I can move forward... I'm not sure I will trust them and their ethics.
Just came from a 2 3/4 hr closing from the purchase of my HUBZU property. My advice to all of you who are wondering about this company - run as far away from them as fast as possible! (You can see the beginning of my story a few posts back).
Without going thru all the gory details of the entire process (which would fill this entire forum up and have all of you shaking your heads in amazement) - I started with the beginning of this story- and I will finish with the end of it all.
Closing was set for yesterday at 1pm. Title company (also owned by HUBZU - Premium Title) - did not get the closing package to the mobile closer (title co in GA - we in IN) - til 1:35pm. The closer then had an hr drive to get to closing site. Needless to say - the closing did not happen. We left the bank. HUBZU then spent the rest of the afternoon trying to 'bully' us into dropping everything and coming back to the closing site in the evening - as they said "Our contract was going to expire and we would lose the property" - (we threatened (another) lawsuit - as this had become an almost daily sentence that we have had to use). (The title company representative actually told her boss that WE were the reason for the re-scheduling - not that she did not get the documents to the closer in time). After that one - we (my realtor, my banker, and us buyers went crazy on them) - (She was subsequently removed from the file and we have no idea what happened to her - but we were suddenly dealing with a brand new person at the last minute).
Another closing was set for today. New docs were drawn up (as dates had to be adjusted)- and in just one day our closing costs went UP $160 from the previous days HUD-1. We spent over an hr on the phone (with people that are impossible to understand due to the fact that everything is outsourced to India or somewhere close). The closer could find no reason for the increase (they built it into the title policies). First they claimed it was an error on their part and the higher amount was the correct. We challenged them - they were wrong. Then they blamed it on the lender stating that he changed his loan amounts (we were on speakerphone and the bank representative went ballistic on them) - then they kept hemming and hawing and finally said they would send over a new statement. We waited over an hour & made 4 additional calls to them before said statement actually arrived. It had been adjusted back to the original previous days amounts.
Were they trying to pull something? Absolutely! And it got noticed, and they got called out on it, and they lied thru their teeth pulling every angle they could think of. We were prepared to stop the closing, walk away and report them to all the proper commissions that govern their industry. (And as it stands now we ARE preparing a case of the entire process - from the $1000 they originally padded our bid amount - to the attempted milking at the closing - to the entire process that has transpired these past few weeks that have been completely unethical, chaotic & downright ridiculous). (As I said, I wish I could share it all with you here- but honestly, I have been living it DAILY and am so sick of the entire story that I just have to say, "Trust me on this one" - it would have been easier to just have spent each morning sticking a fork into each eye and getting the day over with.
Did I still buy my house - yea, I did. Because I REALLY wanted this one - and that is the only reason. Had this just been 'any' old house - I would have walked a long time ago...
Okay, just one more for those still skeptical - They called me about a week ago, said that the lender was ready to close and 'I' had been holding them up. They ALL wished to close the next day and I needed to be ready. I am NOT closing until the 6th - which is the date YOU set up I told them. They then called the lender and told them that 'I' wanted to close now (as in the next day) and that I couldn't understand why the lender was dragging their feet. Unfortunately for them what they don't know is the 'lender' is an old family friend. I called him and told him I didn't know he wanted to close right now. "I don't" he said, and I told them that, and I wasn't aware that you did either- as they have just so informed me. "Amazing", I said- apparently neither of us really never knew what the other REALLY wanted - good thing they tried to help us out with that one ~
... Convinced yet....?
Hubzu is hands down, the best place to buy foreclosed properties. I may be wrong, but I feel that all of the complaints on here are from ignorant buyers and/or agents. I work with Hubzu on a weekly basis and have not let one deal slip. I find deals.. and I help my clients find deals.. And we close every single time. Call me anytime for help. I've helped people all over the country and have closed over 15 deals in Michigan. Banks are not in business to market/sell foreclosed properties.. and that is where Hubzu comes in.
Rehabbing my HUBZU buy right now. Went through My realtor. Was a little different that the conventional ones I had bought. But nothing totally out of the question. I am just glad my realtor has a sense of humor. It's a learning process every time I buy another website house. They are legit. I do own my house, and now the rehab is going well.
I'm new to this blog thing but have been reading all response and questions about HUBZU and I'm hoping for some input quickly!
I am trying to acquire a property listed on HUBZU... it has a similar story to many that you have talked about. Reserve was not met.... they emailed my realtor to see if we would go up to what they wanted so I offered more but wanted closing costs and I bid accordingly... I was high bidder on the first auction and won the bid but after being told they would negotiate if we won the bid they told us no they would not pay for closing.... eventually they listed property again for traditional sale... a couple low bids of $111,000.00 highest and I knew what they wanted so I went in higher because I wanted them to consider my 203k loan instead of the cash or conventional loan they requested. An email said they do consider on case by case basis fo 203k loans. I went in at $140,000 with $1,000 in closing costs (they stated this time may help with closing) then someone bid $142,000 so we went to $144,000 and someone jumped to $150,000 right after! After reading your stories that you think HUBZU bids to get more money I seemed like this might be the case since my realtor wasn't getting any notifications that we were out bid like she normally did so I was going to sit tight and think about it....then all the sudden the auction changed to "Highest & Best" type sale stating that multiple interest and they wanted everyone to submit their best offer by the next day at noon they will review and choose one. So I'm wondering if they are just trying to get more money and there isn't really another real bidder or if it really is and they just want to finish this and get the best offers in. Has anyone had this experience? Do they ever cover any closing costs? Do you think they are scamming me? I really want this property but I can't go much higher....the email states the current highest bid....??? I don't know what to do? I'm hoping someone out there can help me Idon't want get scammed.. before nobody seemed to want to pay this high price and then bumped it up b $6,000 in one offer? usually smaller increment.... does anyone have experience with tem taking 203k when they requested cash or conventional..?? Need to decide by early tomorrow...help please!
Update on my situation
I ended up winning the highest bid....yes I think hubzu bid against me to raise the price. They did however accept my financing of 203K and gave me a closing date about 38 days
out.... hoping we are ready I think we will be.. a few snags with locked doors having to wait for a contractor to fix as the lock box isn't working. They seem to be easier to get a hold of now that a sale is pending.....
so I bid on a home I REALLY want... I bid the starting bid with all intention of bidding til I met the reserve price closer to the end of auction... Second day., there is a bid 30k higher than mine. What typical Joe blow off the streets does that ? Does anyone have experience with this and think it is possible that the seller or the bank hiked up the price?? Isn't that illegal? I'm scared that it really is a person who bid crazy like that. . but at the same time I don't want to just keep bidding while there are several days left because I can't afford to go much higher.
I don't want to just keep bidding while there are several days left because I can't afford to go much higher.
It is most likely them schill bidding. I saw it happen on a property I was going after. It kept coming on and off the market for over a year. I would bid the minimum each them, then almost immediately, "someone" bid it up over reserve price... It irritated me so much that I almost complained to the RE commission and AG.
That coupled with their fee that they kept changing up to 4.5% made me walk. Not worth it. It is under contract now, and has been for some time, but I don't know who would pay that much for the home... Either keep at it or walk. I chose the latter.
hope this helps someone Hubzu Online Auction
Update on my situation
I ended up winning the highest bid....yes I think hubzu bid against me to raise the price. They did however accept my financing of 203K and gave me a closing date about 38 days
out.... hoping we are ready I think we will be.. a few snags with locked doors having to wait for a contractor to fix as the lock box isn't working. They seem to be easier to get a hold of now that a sale is pending.....
Did you use their closing services?
Currently bidding on a property listed in HUBZU.com. It seems that you have to agree before hand when bidding that you will be using their title services. Peoples description of it was accurate. It mentions there that "buyer" will be saving $$$, insurance, search, etc etc. Sounds good actually. But with the reviews behind it, I wonder if there anyone has won recently and went with his own title/closing services.
Hi Thomas...
No I did not use their closing agent. If my memory serves me right I read somewhere that you shouldn't use theirs but can't remember why. I used my own closing attorney and they had already done business with them in the past and had an idea what they were in for. Closing was a nightmare... they originally gave 38 days til closing then at the last minute wanted to extend because they weren't ready. They went back and forth about many things and seemed to have no clue what they were doing. My attorney's assistant kept insisting they do things faster she was kind of bitchy to them. I ended up paying for something extra that was minor just to get the ball rolling... good luck! But I love the rental I bought I rent on Airbnb and its been very successful!
The reviews I read is that you are much better off going with your local title company There have been so many stories of long delays and small liens not found till after closing You might save $600 or so on title and closing costs but it can cost you more
After bidding on Hubzu off and on for a few years I finally won an auction Hubzu has a disclaimer that it is not a contract until the seller signs it Well after 48 hours hubzu cancelled my contract .I do not if it had anything to do with requesting my own title company or they felt that they sold it too low
Hi I need some help please and would like to state that I had no business getting involved in an online bid, I am not sure what came over me at this time. But I need advise please. I placed a bid for $103K on a large property and the bid was declined, I then upped my bid but it wouldn't accept it until I typo'ed $133K when I meant to type 113K. Anyways that is neither here nor there bc the property is a complete disaster and I want to wash my hands of this transaction completely. I have received 2 email correspondences from Hubzu / AltiSource with ACTION REQUIRED OFFER APPROVED HIGH BIDDER ASSET#. At the end of the day I desperately do NOT want to be involved with this company on any level after reading everyone's complaints and as of right now I have not paid them a penny or provided them with any financing information nor my credit card info and I have not responded to their two emails they have sent me. Can someone please let me know if its an option to just ignore them, or do you recommend responding to them and telling them based on 50 reasons I am no longer interested in this property or doing business with them. Is there any step I need to take to protect myself, do they have any type of legal recourse on me at this point? Could they still legally bind me to pay the fee to bid?
Any help would be greatly appreciated. I am including some communication they are providing in their correspondence to me below (note the note section this looks positive right?). And yes I learned my lesson not to do this ever again...lol.
Thank you
DETAILS:
Winning Bid: $140,000
Escrow $1,400
The closing date for this transaction is currently scheduled for May 15, 2017. If you wish to reschedule the closing date, please send your written request via email to me. I will then submit a formal request to the seller. Please note that the closing date cannot be changed without written approval from the seller.
NOTE: THIS EMAIL DOES NOT CONSTITUTE AN OFFER OR AN ACCEPTANCE OF YOUR OFFER. DOCUMENTS ARE NOT BINDING UNLESS AND UNTIL THEY ARE FULLY EXECUTED BY BOTH THE SELLER AND BUYER.
I just purchased a property expecting to close next week
Hubuz.com is ok; my experience is not bad and not great
I believe if you do not reply back to them within 48 hours
They will put the property back on bidding again
I hope that helps; at least that what the hubuz person told me
Cynthia
@Susan He - You need help for the mistake you made and questioning the Hubzu. I have purchased properties from Hubzu and don't not have any problem. You need to understand it's digital platform connecting buyers with seller. They may not be perfect but better than many.
Happy Investing
Vivek
hubzu was awesome!!
lots of tape and what great deals if you can handle talking to someone in india-HA!
enjoy