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Auction.com
Wow, I'm dealing with Auction.com on one of their real estate wonders and I just have to shake my head. They want me to sign a contract without a legal description! The representative claims most of their deals don't have one in the contract....... Dealing with them is shady enough, but this one takes the cake. Of course it's a Nationstar property......No legal, no deal......
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If I use my own title company and pay for my own owners policy (this is a on a REO property) will I still have to pay some fees to the seller's title company?? I can't get a straight answer out of Auction.com and I see folks on this site claiming they had to pay exorbitant fees to the seller or Auction.com's title company in these auctions. I don't see why the BUYER would pay a title fee for the seller. It is customary in my state (MN) for both the buyer and seller to have their own title company and pay their OWN fees. Then both the buyer and seller pay a fee of about $250 for closing or settlement to the buyer's title company where the transaction is normally closed.
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1. When you work with an agent through the auction.com process, do you pay the 3% commission to the agent plus auction.com fees plus escrow fees?
2. Do I understand it correctly that auction.com is just a vehicle to find the buyer?
3. From auction.con site it appears that they may sell only a 2ndary note or otherwise incomplete posession which is your responsibility to research. From some of the posts it appears that there could be some contingencies placed on the deal. Do I understand it right that if you are O.K. with potentially forfeiting your EMD you can do all the verifying - title, inspection etc. After your bid is accepted?
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can anyone share how long closing can take? And has anyone used private lenders/HML for these?
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Very informative thread. I have been watch auction.com but very Leary. I am assuming everyone here are buying these for cash. Otherwise how are you getting you bank in there.
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Originally posted by @Chris Sukala:
Very informative thread. I have been watch auction.com but very Leary. I am assuming everyone here are buying these for cash. Otherwise how are you getting you bank in there.
It's pretty much a cash business unless you have an open line of credit. I've seen some auctions where they offer financing in house, but not often. Most of these properties wouldn't hold up to FHA standards for sure, and many private banks might balk as well. At least this have been my experience.
Can we use commercial loans to buy the auction properties?
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@Peter Chevalier, I am experiencing similar issues as @James Bell.
I had my attorney read over the contract and signed within 24 hours. However, it is been for almost 3 days now and no contract agent has reached out to me.
Auction.com phone line is consistently busy, and I am unable to reach out to any agent if I call any time after 8am. So I have decided to wake up early at 6am every morning to reach out to your customer service. I am proactive, and I am hoping with my productiveness I would be able to speak to your contract agent.
Unfortunately, no luck. I have been leaving voice mail, email, and your customer service have been posting notes to your contract agent, I still have not received any return phone call/email from your contract agent.
I have also reached out to the escrow company and they have mentioned they don't even see my property is listed as a property that they should provide service for.
Can you advice me what I should do next? I would really appreciate your help.
Thanks,
Helen Z
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@Peter Chevalier, Interestingly, your contract agent has just replied to me minutes after I reached out to you. I wonder if this is related.
Hi, can anyone tell me if there is a way to do a Lien search without hiring a title company? The property description says "Quit Claim Deed or equivalent". I phoned action.com and they advised I do a title search before bidding. The bidding begins this Saturday. Anyone help?
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There are independent title searchers. If you visit the recorder's office (or maybe call there) they might be able to let you know what independent searchers work in your area. But a title search is not the same as title insurance. What the rep told you doesn't sound right. I would expect at least a special warranty deed when buying from a bank.
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Tom K. It has been my experience that Auction.com and their sellers will issue a Quit Claim unless you go proactive and obtain title insurance on your own.
Originally posted by @Tom K.:
Hi, can anyone tell me if there is a way to do a Lien search without hiring a title company? The property description says "Quit Claim Deed or equivalent". I phoned action.com and they advised I do a title search before bidding. The bidding begins this Saturday. Anyone help?
@ James Bell In the auction.com property description it does not mention that title insurance will change the type of deed. I guess I can always phone them again and find out. I did noticee that other properties specifically state that acquiring title insurance may lead to special Warrenty deed. Can you tell me what avenue you use to search for any liens? I'm nervous about this because why do some bank owned properties offer the special Warrenty deed and others only the quick claim deed? And if I bid on the property and win, do you think I will have time to do a title search and then if all goes well set up title insurance for closing? I worry the large deposit they require Wil be gone if I try and pull out.
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A Buyer's Premium equal to 5% of the Winning Bid Amount or $1,500 (whichever is greater) will be added to all Winning Bid Amounts to determine the Total Purchase Price.
If you are the Winning Bidder, an Earnest Money Deposit of 5% of the total purchase price or $2,500 (whichever is greater) is required.
No Title Insurance offered at closing.
Buyer will receive a Quit Claim Deed or equivalent.
This property is reported to be occupied and buyer is responsible for obtaining possession.
Property is being offered as is, where is.
Buyer representing self will not be paid a broker co-op commission
Until the seller's reserve price is met, Auction.com may counter bid on behalf of the seller. Counter bidding gives buyers and sellers more flexibility to find a mutually agreeable price. Counter bids do not occur after the seller's reserve price is met. Learn more about reserve pricing.