Advice for newbie to proceed with Auction.com contract

[Howard Janes]

Forgive me if this topic has already been covered but here goes. After decades of desiring to flip houses I finally decided to move forward and get involved. So about 4 months ago I secured my funds and began the search for a house to flip. At the same time I joined Bigger Pockets, but ashamedly only as a “toe toucher” member. Anyway, with the help of my sister in law, a very newbie agent, we found what appeared to be a solid first time flip. Being new to this market I wanted to compare it with other homes in the area. So onward we pressed looking at home after home only to realize that the first deal was the best value. Finally I was ready to put an offer on this home when to our surprise the listing agent had lost the home to Auction.com. I was bummed but thought I would go ahead and sign up on auction.com and bid only to the amount I originally was going to offer. Well the auction ran it’s course, and all though the reserve was not met, the listing stated “pending sale”. Since I was the highest bidder that meant to me! Shortly thereafter I received a phone call from A.com congratulating me and that I must go through a process allowing them to present my offer to the seller for approval (which I believe is bank owned). Anyway, I could not respond to the emails within the time frame set forth by A.com as I was already in route to pick up my daughter from college. By the time I returned home, and it being Friday night I knew it was unlikely to get a hold of anyone. I tried calling A.com but understandably it was after business hours and they are closed until Monday morning. So, if anyone has been through a similar situation would you be so kind as to share your wisdom? Below are my concerns:

• 1)Since I did not meet the time frame A.com set forth can they take the $2,500.00 I had to put up on my credit card in order to bid on this home?
• 2)Again, since I did not meet the A.com time frame what legal action can they take against me?
• 3)After reading others horrible experiences using A.com (e.g. after agreeing to A.com terms they lost all recourse action and complete control of the entire process) I do not really feel comfortable proceeding, even if my prior issues can be rectified. What legal action can A.com take against me if I just drop the whole thing?

I know, I know, I should have investigated deeper prior to bidding and checked with BP. I just had no clue this was the way online auction proceeded. If I get through this process I believe I will smarter, I just hope not to be poorer…haha.

Thank you in advance for any replies and wishing you all a blessed Christmas,

Howard Janes