All Forum Posts by: Lon Mapes

 Hi Eric,

These Hubzu "auctions" aren't really auctions in my opinion.  When I think of an online auction, I think of eBay.  When you win the bid on eBay, you know you are getting whatever product you bid on.  With Hubzu, you can have the highest bid at the end of the auction but you really haven't "won" it.  It's a crazy system geared in the bank's favor.

Congrats, Brandon.  Glad it worked out.  They really made you sweat it out a long time.  

@Brandon Fahlman, yes, 8 days after the auction closed I got an email from Hubzu that the lender had accepted my offer.  

What suprised me was that we were able to close in 3 weeks with conventional financing.  I used Movement Mortgage and they lived up to their name by "moving" very fast.  I used Hubzu/Altisource's escrow and title, as they offered a discount and I was pleasantly surprised with how efficient they were, even though all their staff is outsourced in India.  They were very professional.  So this auction had a happy ending!

So the drama goes on. I "won" the Hubzu auction with the highest bid last Thursday.  What is so crazy is that even though the auction has ended and my offer is in "review" status, Hubzu still allows backup offers!  

My offer was the 9th offer that was highest bid at end of auction.  Now total I see there's 10 offers.  So someone made a backup offer.  From everything I've read and been told by the Hubzu listing agent, there is the possibility that someone could make a stronger offer than mine and they could choose that and kick me out.  That defies all logic of what winning an auction should mean.  

Jason, I agree with you 100%.

Hi Don,

You stated exactly how I feel!  It's very misleading to even call this format an auction.  High bid should get the deal, bottom line.

Hi, I had my first experience on Hubzu last week.  I had never used this site before so when in blind.  

A home went up for auction in a midwest state where I've had expeience investing.  I was able to "win" the auction with the highest bid.  The other good news is that the reserve was met.  So a few minutes after I won the auction, I recived an email from Hubzu saying I was the "highest bidder" for this property.  It also said the following:  

• This property is associated with a special servicer. Selected bids or offers for special servicing properties are subject to approval through a third party financial institution and are not guaranteed approval. Bid or offer review and contract generation may take several weeks.

From talking to a nice womwn who is the listing agent for Hubzu, it seems that "special servicer" auctions are not a done deal when you think you "won" the auction.  I was told that "special servicer" means that instead of one asset manager making the decision, it has to go up a bureaucratic chain at the bank with mutiple departments reviewing it and could be up to 6 weeks before I hear back from them.  She said the bank has the option to choose my "winning" high bid or other offers if they so desire.  So basically winning this auction didn't mean what I thought it did.

I really want this property and am hoping it will work out.  I'd love to hear from others who have been in this similar situation with "special servicer" auctions at Hubzu.  Hopefully some success stories to make me feel more confident.