Hubzu listing

[Dena Zeid]

hello all,

I'm a new investor :). I'm looking at aproperty in Florida in a very nice gated neighborhood that's in foreclosure.  The property is listed on hubzu.  The property seem to be in great condition, but no inspection was done.  Termites and mold might be a concern.  The property is 3400 sf.  I did some research and it seems that the property went on the city public auction back in March and ended up with the bank.  The bank is now listing it with hubzu.  Here are my concern so:

1. The bank that foreclosed is not the first mortgage.  The property was bought in 05 with a mortgage of 300kish. This loan was never SAT.  A few years after,  the owners took out another loan for 500kish.  This is the loan that forced the foreclosure.   Again, I'm a newbie, so I'm just sharing my findings.  Should that be a concern?

2.  Is hubzu a legit website? I did some research and got mixed reviews.

3. Hubzu has no contingencies, so I would lose my earnest money if there was an unfavorable outcome to the inspection or the title search.  I have 48 hrs to pay the earnest money.  Do you think I can do a title search and inspection within that short timeframe?

4. Worst case scenario, how much can it cost to treat a 3000 sf house for termites and mold?

Thanks for your time, any respons would be helpful :)

[Jeff Bridges]

I don't recommend HUBZU for your first purchase. The reasons as a) you can't inspect or insert any financing or inspection contingencies and have to use their basic sales contract b) online auctions are suspect and might not result in your getting the best deal since the bank always is allowed to bid up the price up until bid close, resulting in you bidding against computer-generated bids that artificially raise the price, when there is no real competition. c) auction fees on top of normal closing costs. The entire process is very opaque and not to your favor. Stick with traditional REO MLS listings, you'll have better support from your selling broker, better disclosures on property condition, and more time to perform your due diligence in the form of inspections, contractor estimates etc prior to closing/ or end of your inspection contingency. Only experienced investors will have the ability to do the quick turnaround on inspections and identify red flags quickly enough to benefit from using the site.