Hubzu.com, Auction.com, HomePath.com, HudHomes.com

[Brian Garrett]

I've heard several investors talk about deals that they've purchased from Hubzu.com, Auction.com, HomePath.com, HudHomes.com, etc. Are the properties that are on these kind of sites typically listed on the MLS as well? I'm trying to figure out if there's a need to invest a lot of time studying these websites to potentially purchase deals from or if my network of realtors would see the same deals on the MLS anyways. Basically, what are the advantages of buying from these sites?

[Christopher Phillips]

@Brian Garrett

They are just auctions and part of the journey for distressed properties.

Auctions are not on the MLS.

A house under notice of default may try to list with the MLS. But if the foreclosure proceedings move forward, the house will be taken off the MLS and then sent to auction. If the lender or trustee doesn't get the price they are looking for, they will then the lender will buy back the home. Once they clean up the title and remove the occupants, then the house will be relisted on the MLS as bank owned property.

If you are going to get involved in auctions, you have to learn about the rules for that particular auction, the financing or cash requirements, and the expectation of occupants and title status. This goes for online auctions and Sheriff or Court House steps auctions or tax auctions...

There really isn't an advantage or disadvantage, it's more about understanding the process and what you're getting into.