Buying from online auction site HUBZU

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.

Does anyone have any experience with HUBZU.com

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Ann Bellamy

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.

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NaTarrio JonesPro Member
Rental Property Investor · League City, TX · Member since 2016 · 97 posts · 32 votes
9y
In all my experiences, every home I have visited that was listed on hubzu has had major foundation issues.
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Cynthia Ng
Real Estate Agent · Hopewell Junction, NY · Member since 2015 · 60 posts · 11 votes
9y
just closed on my first Hubuz.com today; the listing agent suppose to get the water meter reading before closing since hes nowhere to be found and it was less $30 bill I just let it go
other than that issue; it was not bad experience
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Robert J Carlson
Acquisition Specialist / Investor / Rehab Specialist · Hammond, Indiana (IN) · Member since 2016 · 102 posts · 13 votes
9y
They say that they are from Atlanta, GA ,They might be from Atlanta, India. Bought two from Hubzu.Their title company sucks it will correct their mistakes and there will be mistakes.Email them cannot understand phone conversation
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Malcolm Lawson
Annapolis, MD · Member since 2015 · 132 posts · 52 votes
9y
As a realtor I have used Hubzu several times because the homes are also listed on the MLS. It has a great user interface and easy to understand. I have seen clients get pretty good deals on there.
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Ingrid Nagy
Investor · Mplwd, NJ · Member since 2017 · 8 posts · 2 votes
9y
So I am in midst of this process - do not see anyone listed from NJ commenting. Can anyone comment on 2 points:
1. New Jersey addendum - does it really result in over riding 3 day attorney review for auction properties? Required no contingencies, which typically not a problem since can get an inspector in there doing attorney review period usually. However, while one point stated have ability for attorney review, another section stated for auction properties, supposed to have attorney review agreement before bidding(and realtor supposed to inform you)?? I did not see any stipulation prior to bidding reflect this information/link to agreement/contract.
2. I accepted their title co during bid process. I now want to switch to own title co. Told I could do this during attorney review(assumed by realtor) . However, given above, its unclear if attorney review is 3 days, or NJ addendum does actually override state law? Does anyone actually know the answer?
For background: I worked with realtor when this listing came on MLS. Turns out its a Hubzu online bid property. The actual bidding process, they ended up delaying a bid I was set to place in last 30 seconds, so assumed I lost bid. Then they sent a message as others have mentioned around reserve not met. reserve is x, place bid for that price or higher by 24 hour later deadline. There was only 1 active bidder, and total of 4 bidders, beside myself. I placed a "best and final", was informed following morning had winning bid. This is when I started to question Hubzu. Realtor never actually had gotten to the winning bid point before with a client. Unable to set any contingencies, and unfortunately, before I read reviews, Realtor said accept their title co. So now I got an agreement that essentially reflected their title co. Also, while supposed to have 48 hours, got emails stating had to sign by end of day (Friday). No intention of setting up LLC or submitting earnest money at this point till can speak with attorney, and its a holiday weekend.
So may lose this bid in interim - buy hey, all throughout the upfront disclosure, it seems Hubzu can cancel or accept other offers at any point - they are never committed! Amusing , but no chance I will proceed further or pay any funds till sort out above.
Any feedback/experience and can advise, weclome it
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Vivek Khoche
Investor · San Jose, CA · Member since 2017 · 343 posts · 102 votes
9y
@Ingrid Nagy- I closed my property on March 16th, my second one from Hubzu. I read lot of negative comments from folks seems to be one of those impacted with the digital enterprise. Hubzu is only platform connecting to buyers to sellers. They don't have control over seller and their messed up system. They are not perfect but lot better than any player in the buying selling process. Where could you buy a property values $174K as per the tax record for $112K. You can do all kind of checks depending on how good system you have in place.
Alternately I walked out of off market deal @71K that eventually got sold to investor through layers @$103K, I would buy something with $103K that has tax value of $160K - $180K.
Happy Investing
Vivek
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Ingrid Nagy
Investor · Mplwd, NJ · Member since 2017 · 8 posts · 2 votes
9y
Thx, really looking for answer to this is questions for NJ. Good to hear your experience in San Jose Calif!
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Cynthia Ng
Real Estate Agent · Hopewell Junction, NY · Member since 2015 · 60 posts · 11 votes
9y
Worked for upstate NY as well
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Derek W.
Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
9y
@Vivek Khoche this is probably a thread hijack, sorry in advance for straying off topic, but I'm confused about your reference to tax value and any hint that tax value has anything to do with a properties actual current value.
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Vivek Khoche
Investor · San Jose, CA · Member since 2017 · 343 posts · 102 votes
9y
@Derek W. - Yes when I mentioned tax value it's the appraisal value from county for calculating property tax. Good starting point for property value ARV may differ.
Thanks
Vivek
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Ingrid Nagy
Investor · Mplwd, NJ · Member since 2017 · 8 posts · 2 votes
9y
Ok my questions are specific to Hubzu, closely aligned with OP questions. Specific to NJ and specific to auction properties, in my case.
General comment on off topic post- Tax Value and assessing property value varies so much location to location, it becomes area specific. Even within NJ, it varies to such a large degree on tax assessed vs FMV. People who have neglected the house or been in 2 years of delay tactics to foreclosure the FMV is below any other house and certainly have not challenged the county or township assessed value to reflect reality. Same with inherited estate property, no one has been minding the house, or tax assessments in years.
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Raina B.
New York, NY · Member since 2017 · 57 posts · 11 votes
9y
Hi I'm not sure if this was mentioned or not I'm in the progress of reading through the thread now, but how would one fund a bid on here? I found a house that was listed on RE/MAX and realtor.com but then come to find out it's a house on the auction. The hubzub Rep said they closed the auction because they didn't like any of the bids and will be opening it up again soon. I would like to have a chance at it but right now do not have the full amount cash. Can I use a fha mortgage?
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Arthur Lyons
Wholesaler · Philadelphia, PA · Member since 2016 · 35 posts · 20 votes
9y
Braden C. How did you wholesale it? The contract was assignable? You were able to write and / or assigns?
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Arthur Lyons
Wholesaler · Philadelphia, PA · Member since 2016 · 35 posts · 20 votes
9y
Mark Blashkiw yiu mentioned yiu getting theese properties for your buyers... are you wholesaling them? Are the contracts assignable? How are you wholesaling them or passing to buyers?
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Ingrid Nagy
Investor · Mplwd, NJ · Member since 2017 · 8 posts · 2 votes
9y
@Raina B.tslk to a realtor you work with and has Hubzu experience. They will get realtor fee no cost to you if actually win bid. They can clarify any mortgage opportunities, or 203k, or private money can be used.
1 Reply
Nick Ferroni
Flipper · Wayne, PA · Member since 2016 · 16 posts · 10 votes
9y
It's a very confusing multilevel company. But it's legit I have bought several properties from them
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Judy Paley
Rental Property Investor · NJ · Member since 2017 · 28 posts · 3 votes
9y
Ingrid Nagy did you find anything out about the NJ addendum ? I am an investor but This will be my first experience with Online bidding thru Hubuz and could use your advise. TYIA
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Rick Kay
Conroe, TX · Member since 2017 · 3 posts · 0 votes
9y
Totally new to this, so bear with me.
What would be my chances of just having my real Estate Attourney (REA?) walk into the owning bank with 20%+ down and the bank honoring it? Sometimes these come up so fast that I have to go to the county the next day to get realistic information on liens/actual acreage/utility info etc. and would love to parallelize the process as much as possible. I want to forgo the endless lead-generated agents calling me every 10 minutes trying to get a piece of the action.
I love a good realtor/agent when needed upon my house-hunting trials, but I avoid them when I find things myself and want to research for myself. I would assume a good REA can do the work in a massively cheaper and more focussed manner as well. am I off base here?
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Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
9y
Originally posted by @Rick Kay:

Totally new to this, so bear with me.
What would be my chances of just having my real Estate Attourney (REA?) walk into the owning bank with 20%+ down and the bank honoring it? Sometimes these come up so fast that I have to go to the county the next day to get realistic information on liens/actual acreage/utility info etc. and would love to parallelize the process as much as possible. I want to forgo the endless lead-generated agents calling me every 10 minutes trying to get a piece of the action.
I love a good realtor/agent when needed upon my house-hunting trials, but I avoid them when I find things myself and want to research for myself. I would assume a good REA can do the work in a massively cheaper and more focussed manner as well. am I off base here?
No way would this be successful as the person you talk to at the bank would have no clue about the property that they have for sale. Banks contract with Asset Mangers to handle the sale of their REO inventory
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Cody Wirz
Investor · Frisco, TX · Member since 2016 · 8 posts · 0 votes
8y
I am closing on a property from Hubzu tomorrow (in Dallas, TX). While their title company Premiere Title (PTS) has been easy to work with for me, I still get a fly-by-night company feel from them. I am nervous about sending a wire transfer to them in that it may go into someone's pockets and I have nothing. However, I have read in this forum and site like Yelp, that while communication is poor that in the end they always come through and people get the house that purchased from Hubzu.com. They used Westcor Land Title Insurance, but when I call them, they say I need to talk to Altisource if I haven't closed yet. In the end my question is ultimately....Has anyone heard of them running scam and not getting the property after wire transfer? Or does anyone have a success story in the Dallas area that used Premiere Title (PTS) and used Westcor?
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
@Cody Wirz
Do you have a lender? If so, have you reviewed the title commitment and related documents? Included with those docs should be a Closing Protection Letter.
If this is a cash deal and you are purchasing owners title insurance, you should receive a Closing Protection Letter in your own name.
Basically that letter will guarantee your funds will be used by the title company for the purpose of your transaction and if anything goes wrong (similar to what you've described), the title insurer is on the hook.
Gimer Law516 Reviews
Website View Page
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Nick Ferroni
Flipper · Wayne, PA · Member since 2016 · 16 posts · 10 votes
8y
Hubzu is legit. I bought multiple properties through there. There is a learning curve with the bid process and Customer service isn’t the best
1 Reply
Eric V.
Rental Property Investor · Red Bank, NJ · Member since 2018 · 17 posts · 8 votes
8y
Has anyone successfully completed a 1031 exchange using a hubzu purchased property as the replacement property? Thanks
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