All Forum Posts by: Account Closed

I recently put a house under contract with auction.com. I was blown away by linear title's fees so I called them up and told them I was using my own title company. They said OK but still want to charge me over $500 doc prep fees and put in my HUD 1 that I am responsible for the tax stamps which are typically paid by the seller or 50/50 split in my state. Do I have any bargaining leverage here? I feel like walking at this point but don't want to lose a 4000 deposit.

This is what auction.com told you. 

Why do you want to insist they come after you when they told you they are not interested.

@Shannon K.

When you are talking about a post foreclosed property AKA a bank owned property, you generally are getting the property with a free and clear title.  I say generally because houses that go through a foreclosure have a higher probability of having a title issue.  This is due to people on the legal side not doing their job correctly.  The good thing about REOs is your purchase agreement will have a contingency that the title will be free and clear.  When you purchase the property your attorney will look over the title and determine if in fact the title is clear.  If it is not, either the bank will clear up the issue, or you can walk.  So little worries. 

I am assuming your talking about an REO as opposed to a pre-foreclosure house, because you are having this conversation with a realtor.

When it come down to profit margins as it pertains to acquisition types such as a short sale, courthouse foreclosure, REO and the rest, I believe the best deals are had on the court steps.

Just make sure when you are having a conversation with someone about a foreclosure that you get clarity on whether the property is about to be foreclosed on, or it has been foreclosed on, and the bank has taken ownership of the property.  Folks often call REOs "foreclosures" and buying them is very different than going to the courthouse and buying at a foreclosure sale.  

Relax, they are NOT going to come back with a lawsuit or judgement.

It is not worth their time even if you signed the contract. Which it sounds like you did not, thus you are not under contract with them.

If you backed out after sending the earnest money, you would probably lose that. 

HOA fees are paid by the bank, before closing. You want to double check the HUD and not sign if they overlooked that.

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