Has anyone had any experience making offers using HomePath and Hubzu?

Question

As I'm looking through REO's in my market, I notice several that require I used another website to make an offer.

Has anyone had any experience using these websites to make offers and any advice.

Micki M. · Answer

Ditto what Chris said. Hubzu and Homepath are two very different options.  Hubzu is an auction site, you generally have to buy as is with no guarantees, and will pay a "buyer fee" on top of your purchase price.  They list properties low to get attention and then they often sell for much higher, and I've heard stories of them not closing and people losing money through them.

Homepath is buying from the government, so even though it's a cumbersome process (work with a broker who is experienced in it), you can get some good deals, especially if you can buy as an owner occupier during their "first look" program.  FYI Homepath lists properties in US territories as well, so I have fun looking at options in the USVI and Puerto Rico.

Chris Stone · Answer

I have made offers using both sites for my own investments. (I am a realtor) HUBZU was the worst! You would end up talking to some call center with people that didn't speak much English. Everything is outsourced. The entire process was really stressful. I insisted on using a local title company. (HUBZU said they wouldn't pay for that, but they ended up picking up that bill)

They don't let you turn on the utilities. This was a condo in pristine condition so the inspector did what he could. I ended up fixing a hot water heater and replacing the garbage disposal.

We rent out our condo furnished monthly mostly to travel nurses and the Santa Fe Opera. Our return is close to 10 percent so we are happy. The tenants are quality and we've had little trouble.

So maybe do as I say, not as I do. Be careful with HUBZU.