HUBZU, - does it make sense?

[Oscar Olaussen]

I have a bought some properties on Hubzu, and as many of you have stated, you have to be patient to get a good deal.
After over a year watching and dealing with them, I can still not figure out their business model. What I have seen so far, it just doesn't make sense to me.
We would all think the objective for the seller is to get the best possible price for a property, but as far as I can see, there is no logic in their strategy.
Does anyone here have some inside knowledge or facts of their business model???
And who are these people who run the actual sales of the homes? Failed used cars dealers????
My last deal on Hubzu and as all the others, have happened as follows:
Property listed for $149.900. Minimum bid: $105.000 Result: No experienced investors are bidding as we do not want to pay the Premium.
Property relisted for $144,900. Minimum bid still: $105.000. Some amateur bid $122.000. (A total of $127.000 incl; the Premium). Hubzu does not accept the bid and the property now goes to "Highest Offer" and with no Premium.
Highest Offer listing has now a starting offer at $88.000 A few low ball offers comes and after watching it for a couple of weeks, I offer $100.000. A new offer comes in at $112.000 and I go to $110.000. One week later, Hubzu counter me with $140.000!!!!
Wow, what a deal!!!!!! I reject and the listing is reset with no offers. So here we go again, starting all over. Long story short, I now offer $89.000 and 3 weeks later Hubzu (the bank) accept.
Like I said, ALL my deals with Hubzu have gone down the exact same way. Who in their right mind came up with this business model????
Does anyone here have some inside fact and knowledge of Hubzu sellers???

Thanks,

[Mark Ferguson]

Here's some history on hubzu from an agent who used to work them hen try we're a different company.

Hubzu used to be gohoming which is the auction site for altisource. Altisource used to be Ocwen. Ocwen and altisource are technically different companies but they are owne by the same people. Ocwen buys properties/services them and altisource values and sells them. I would estimate 99% of the properties on hubzu/gohoming are owned by Ocwen/altisource. I see they are trying to branch out to other sellers now, but this is why the offer them is so wacky. Everything is outsourced to India.

I used to list for Ocwen four years ago them they switched their model to one agent per state an the auction idea. The listing agent does nothing but put the house in mls. They get their vales from bpos that other agents do and the people from India decide what offers to accept.

Ocwen keeps buying pools of assets from large banks. They bought gmac and one wests assets as well as many others. Their model is to sell them as fast as possible and take a quick profit.
FYI, when they do the initial auction, they won't accept anything unless the reserve is met. Your wasting your time bidding low and hoping they will accept it.