Does anyone have experience buying on Hubzu.com where maybe you can explain the process to me a little better? I found a house by driving through the neighborhood. At the time, the house was not listed for sale, it was a foreclosure. I asked my realtor to look into the house and get me information hoping I could reach out to the bank directly and make an offer. I don't think my realtor is experienced at that so I missed out on that part. However, the house is now listed for sale as a foreclosure and is currently being auctioned on hubzu.com. I have walked around the property and inspected from the outside and have a pretty good idea of rehab costs and feel that this house, in this neighborhood, once rehabbed would be a very good investment.
The auction process itself is still confusing to me because I know typically they want cash at the close of the auction. However, this auction is online and says the seller is willing to consider financing. It also says that hubzu.com charges the greater of 5% of the bid price or $1,000 and earnest money due at bid approval is the lesser of 3% of bid price or $15,000. I have a preapproval already and have described the property with repairs I know it needs from my exterior walk through to my lender asking if she thought those issues would prevent a loan on the property or if I might need to put more down. So I believe my loan and rehab costs are covered between my money, my lender, and other sources I have. My biggest concern now is making sure I understand what I need to pay at the acceptance of my bid and closing.
At acceptance of bid it is only the auction fee and the earnest money correct? Then the balance of the purchase price paid through financing, if the house appraises? Closing costs of 8% roughly? There are also liens on the property according to the Sherriff's notice of foreclosure that is posted on the door. I have asked my realtor to look into those for me but it is my understanding that the liens stay with the property so any money the bank receives for the sale that is over the amount the bank is foreclosing on would begin paying off additional liens on the property until the money from the sale is depleted? Any liens remaining would stay attached to the property and come out of my money when I sell the property? Is this right? Any information on this would be extremely appreciated.
