I get calls everyday from buyers all over the country, their realtors try to talk them out of Hubzu because they are not willing to roll up their sleeves and understand the process. Self inflicted issues and complaints.
Hubzu is not a scam. You have limited competition, thanks to all the bitter people that complain about them. If these people took the time to understand how the system works, they would not be complaining. In my opinion, Hubzu does a poor job marketing their properties, they rarely even hit the MLS in Michigan. It is my understanding that Hubzu contracts with banks/lending institutions to market, sell, and facilitate getting rid of their distressed properties. Banks HATE dealing with foreclosed properties, and Hubzu helps take the burden off of them. It is my understanding that Hubzu makes their money based on the 4.5% buyers premium that is added to the winning auction price. In my opinion, Hubzu is a brilliant company and I would invest in them if they sold shares.
Please contact me if you are seeking help with a Michigan Hubzu property. I have driven all over the state to assist buyers with Hubzu in the following cities: Grand Rapids Adrian Beaver Island West Bloomfield Monroe Woodhaven Middleville Alto Freeport Sprint Arbor Ann Arbor Lansing
Because of my participation on this question, I have received dozens of phone calls from all over the U.S. and would like to add some more information (FAQ) for the many interested buyers of "Hubzu" properties:
1. If you cannot find an agent to assist you in your location, please post the question on this forum (Trulia), there will be an agent willing to help you. Do NOT attempt to complete a transaction in Hubzu without professional assistance. If you are interested on a Florida property, please feel free to contact me.
2. No FHA offers can be made on Hubzu.
3. If Conventional offers are entertained on a particular property, the auction will state so: "Financing considered". If the auction states "cash only" do NOT place a bid, Hubzu will NOT later accommodate you.
4. Hubzu will NOT allow utilities to be turned on for any reason, therefore inspections are limited to the use of electric, gas, water, etc. NO exemptions.
5. Inspections as a contingency allowed on "Traditional Auctions" only, they will though, limit the use of utilities as well. If you wish to bid on a "Timed Auction" there is no inspection contingency, if you must have inspections completed due to financing or personal concerns, then Hubzu is NOT for you.
6. If the reserve is not met on a "Timed Auction", even if you are the highest bidder, Hubzu reserves the right to counter your bid or re-list the property.
7. While Hubzu offers the services of their Title Co, you may choose your own, given you pay for the title policy and other title related fees. You can also deposit escrow funds with your title/closing/escrow agent.
8. If there are any title issues with any of Hubzu properties, open permits, liens, violations, etc and marketable title cannot be delivered by the Seller, you will receive a full refund of your escrow deposit, Hubzu will NOT keep your money.
I believe I have covered the most FAQ, best wishes and happy bidding!
Oh, one more thing! Even though financing is entertained on many Hubzu properties, in my very own personal opinion, financing is not always an option. Please visit the property, look for potential issues that may hinder financing, take photos and bring them to your mortgage professional.
I have only submitted bids on properties that offer an inspection contingency. Some of those as is, no inspection, no excuses, look before you bid, properties sound dangerous.
Did get one bid accepted as a back up and it was contingent on inspection, so when my buyers saw previously unnoticed termite damage, we called in a $50.00 termite inspection (tried to renegotiate the price via many emails and an awkward phone call from India... no dice) and cancelled the deal, based on our inspection.
Hadn't even sent in the earnest money and never signed the papers.
Not a company that I seek out to work with, but I'm not afraid to use them. They DO take many hours to respond to email, their "local" agent does not answer the phone, and the broken English is difficult to decipher both in emails and on the phone. These are LEGAL situations... I don't want to be misunderstood.
Continuing to help Michigan buyers EVERY DAY. Do not hesitate to find me online and reach out with questions, I love helping people reach their goals!
Mark Blashkiw - MI Real Estate Agent
Why does the contract state that the buyer pays the "buyer's premium but then says the seller will pay it? Fannie/Freddie limit seller concessions to 2% on an NOO property, so how are people getting these HUDS approved?
1. You must be able to read English.
2. You must be able to interpret what you read.
3. You must own a calculator and know how to use it.
4. You must be able to follow directions, keep up with time lines.
5. You must understand English with an Indian accent and/or not have an "issue" with it.
6. You must be able to deal with not the best of customer service.
If you cannot commit to the above please stay away from HUBZU, those of us who have enjoyed successful experiences will certainly appreciate it.
Not happy that banks doing business in America that were bailed out by American taxpayers go cheap to India with HUBZU cause they think they are saving commissions but really they are losing money because HUBZU cant handle the volume of their auction process. They are serviced in India as you can tell by the improper grammar of any email response you get. The listing agent also verified they are in India. Another example of American Banks ripping of Americans and sending American jobs overseas. And these Patriots don't even pay their share of taxes.
SELLERS: YOU ARE NOT GETTING THE MOST FOR YOUR PROPERTIES ON HUBZU. YOUR BEST OFFERS ARE YOUR BACK UP OFFERS BECAUSE HUBZU SEVERS CANNOT HANDLE THE ONSLAUGHT OF LAST MINUTE BIDS.
It is no different than a HUD/Fannie Mae foreclosure sale â€“ Hubzu just protects themselves more by saying over and over â€œproperty is AS-ISâ€, â€œSeller takes no liabilityâ€, â€œSeller is not responsibleâ€, etc etc. Iâ€™ve had 2 clients have their attorney review the documents and they are indeed legit â€“ you buy the property AS-IS.
I am a licensed Realtor in the State of Michigan and am very familiar with Hubzu and would be more than happy to help anyone secure property. You can do this alone, but you will be stuck with a 30 page sales contact, arranging title insurance, inspections and all of the other admin/paperwork. I do this 100% free of cost to you. If you donâ€™t use a Realtor, you do not get a discount on the home, the listing agent just gets both sides of the commission. I live and breathe real estate and come from a banking and CPA background.
Iâ€™m here to help â€“ Mark Blashkiw 616-706-5341.
My second offer was $36,000 (all cash-no repair) but the higher bid is $35,000
There will be no third offer ever on hubzu.com from me...
Waste of time...
The Buyer's premium is equivalent to a Auction fee, charged to Buyer for facilitating the online auction service
Both these items are added in the purchase price, to let the Buyer realize, that it is their responsibility.
Now comes the confusion, Then why is it declared as Seller concession in section 4.2.3 of contract.
It is because, The seller wants to declare that he / they are not getting the above fees, and is being paid by Buyer to HUBZU through the Seller. Hence making sure this is not part of the Net purchase price( Purchase price Minus Selle's concession ), on which the commissions are calculated. and resulting in giving out accurate commissions.
And hence as per the recent version of the purchase and sale agreement, The seller concession is not shown as credit on Settlement statement, But a charge to the seller in Additional Charges section.
If you have felt the service was not to the point of your expectation, please escalate issues to the respective esclatation contact
Has anyone ever tried the Buy it now? Curious if they counter that too.
There are a couple of persistent complaints that I frequently hear regarding Hubzu...
Regardless of stated opening bid, they will reset and restart a bid after closing date if they have not met the reserve. They do so without disclosure or notification.
Property descriptions frequently do not reflect reality; material adverse facts are routinely omitted; facts which the listing agent or representative is certainly aware of.
Regrettably, I believe that Hubzu is a contributor to the ill will of the mortgage lending industry, which, as we know, has created a massive amount of ill will already.
Hubzu represents the dark side of an industry that used to have integrity; not any more. I avoid them like the plague that they are.
NOTE: even though HUBZU offers to pay for title, get/pay for your own title insurance... otherwise you lose control.
NOTE: arrange your own escrows with proper letters from escrow letting everybody know where the deposit moneys are... do not lose control of your deposit moneys.
CONCLUSION: it's a pain in the neck, but the upside is there are very few Buyers who can put up with the hinky-nature of this HUBZU-process, so it weeds out the weak sisters.
John Child, Realtor, United Real Estate serving the Philadelphia-Area; 676 E Swedesford Rd Suite 140; Wayne PA 19087 888.503/7503 or text/cell: 610-203-6458. e: john@JohnChildHomes.com
Nothing easy so far.
Website experience poor. I am a real estate broker and I was attempting to show one of the listed properties.
The website would not verify my license.
So, I called the customer care line. Automated voice message said " One caller ahead of you. Average wait time of 1 second"
After about 3 minutes, recorded voice said all representatives were busy, please leave a message. Really?
So I tried the online chat help. Estimated wait time 28 minutes.
I told the buyers the poor experience and they were very skeptical of the whole process and decided to move on from this listing.
I doubtI will ever show another property that says to use HUBZU. What a joke.
It's infuriating that I can't get a response from them.
I'm currently looking at a home that's been with them for months, and they have let it sit and deteriorate (as well as thieves stealing equipment, etc), and are almost down to the original price I offered months ago, as others will state.
If you're looking for logic or helpful employees, stay away from Hubzu. If you have money on hand, and an indefinite time table to sit and wait for them to drop a property's value to a realistic number, then it can probably work for you.
I'm giving them one more week on the home I'm looking at, then I'm getting out of the bidding, and as far away from ever dealing with Hubzu as I can get.
I wish anyone at Ocwen cared enough to return any of the calls I've made, perhaps they'd get some information on how Hubzu is milking them dry and letting properties that could have sold months ago sit and fall into disrepair, thus actually driving the price DOWN...
United Real Estate, Wayne PA (outside philadelphia)
Sherry Shanklin; Northwest Tennessee
My biggest issue with Hubzu/Altisource is the complete lack of knowledge of the real estate transaction in the United States. I don't care how many times I "escalate" or demand a new processor, they have no idea what is going on. In my most recent transaction, we closed and 2 days later, Altisource sent an email saying the HUD-1 was rejected. If I operated the way Altisource does, I would lose my license.
Unfortunately, until we quit complaining here and actually complain to our state licensing boards, Altisource will continue to get away with bastardizing the real estate transaction.
So investors it's fine and for other buyers it will work out if they are fine with no way out of the contract.