All Forum Posts by: Vic Iyer

Of late, I have gotten better deals on xome and auction.com than HUBZU. Reason- There is no credit card hold .Numerous whole salers are bidding sending the auction to unrealistic prices. Amazingly the auction ends almost 5 to 10% higher than the reserve price. Most of these properties show up on whole sale web sites and then end up back again on HUBZU. HUBZU has begun cracking down on bidders who are not following through on the sale. I will not be surprised if they start putting credit card holds.

Guac F, This has been my experience:

A high bidder does not translate to a "winner". If you are a high bidder and did not reah the reserve, the following happens. 

HUBZU: IF the bid did not reach the reserve explicitly then you will get a counter from the seller. This happens within 6 hrs.

XOME: IF the bid did not reach the reserve then it goes to the actual bank and the bank can either reject or accept it.

AUCTION.com: AUCTION.com knows the reserve and if it is within the reach of the reserve it goes for seller approval after you pay EMD. It can take upto 3 weeks depending upon the bank and you will get an answer. Typically each home cycles through several auctions before the reserve is dropped to realistic level.

If this is the auction you are bidding:https://www.auction.com/details/2500-adirondack-tr...

then it says" Special warranty deed". This is good news

IT shows as "OCCUPIED". Have you visited the property? ARe the occupants still there but the auction is listed as occupied? IF someone is there find out if they are previous owners or rentors. You may probably have to set aside $$ for "Cash for key". I expect around 2K based on the value of the property. Check if the property is maintained well from outside. If not you can expect the same inside. Check the "Cost rider" in the auction.com attached docs and add the numbers up for gauging your expenses.

Interesting, I am also from Weston.  May be weston investors can meet up regularly. 

Run a title search before you bid and make sure it is the first mortgage  company (superior one) that is doing this foreclosure auction. Make sure there is no IRS Lien!!! Check what will be the cost for title insurance. 

Drive through and check out the outside condition. Is any one living there? You have to deal with them after you win the auction. Try to see if they are former owners or rentors. Rentors are easy to deal compared to former owners. If the condition doesn't look good then inside will likely be bad too.

Try to contact HOA (if there is one) on HOA back dues. You will be the lucky one to cut the check for any back payments.

You are taking enormous risk though! What are the other costs charged on top of foreclosure auction. Add them up. So bid accordingly! Have discipline and avoid going over the number you want to pay.

Scott, 

 My experience is if you use seller's title company they will provide title insurance bu they typicall jackup the buyer closing fee to $800 when you can get it under $400 if you shop for your own title company and get your own insurance. 

Pay attention to the title insurance coverage and what they are excluding. Not all title insurances are  created alike. 

The above post applies to HUBZU or auction.com or xome. 

It depends. Look at the docs they attache to that particular auction. That will show you the breakdown of costs disbursement and who is responsible. Hire your own title company and safeguard your interest. I have had situations where open permits were missed ot utility liens were missed and ended up ponying the $$ to close the sale. Auction.com has network with many banks so each auction is unique. Lot of times when the banks do not get their expected $ then they turn to auction.com and unload it

Never heard of a cash contingency deal in auctions. Are they allowing for inspection contingency? Always look through the paperwork before you wire your eMD

If you don't close your EMD could be in jeopardy. Is it a cash or mortgage contingency deal?