Home Buying in Union>Question Details

House Hunter…, Home Buyer in East Orange, NJ

We bought a home in Union and was wondering if there was any recourse in the short sale process in dealing with Auction.com?

Asked by House Hunter Buck, East Orange, NJ Tue Dec 24, 2013

The seller had two mortgages one with Bank of America and Nation Star. Nation Star forced us (in a way) to go through auction .com where I paid higher than what our contract originally had plus the 5% processing fee of the purchase cost. There has got to be something not right about this and wondering if we can re-capture any money?

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In my experience Auction.com just wasted time pricing a home MUCH LOWER than a Offer I already had on a listing from another office. The Bank Required a Auction.com bid process to see if they got an offer higher than what we had on the table already.

They priced it almost 100k lower on AUCTION.com - (To get Clicks to their website) "IN MY OPPINION"
It gives buyers false hope they can get this home at a crazy low price. When they already have an offer sitting around waiting for the process to end. List price on MLS was $180k Offer was $175k Auction.com put it at 80k for 14 days, required and Open house - NOONE WON THE BID.

SUCH A HUGE WASTE OF A REALTORS TIME ---- BUT THEY ARE GETTING MORE AND MORE CLICKS - making it seem like a REALISTIC AUCTION.

I will change this comment when my NEW EXPERIENCE, with them results in a TRUE AUCTION.
0 votes Thank Flag Link Sun Mar 23, 2014
In my case I paid much higher than what I had on the table. Plus I had to pay a percentage of the their auction fee which cut more into our savings.
Flag Mon Mar 24, 2014
i make an offer in july of last year for a bank own house to date my realtor heard nothing from the bank . How long does it take to get an answer for the bank to reply? how can i find out what bank own the property?
0 votes Thank Flag Link Thu Mar 13, 2014
I would contact the attorney that handled the closing, if you used one, and ask that same question. I also doubt very much that there is anything that can be done, but, unlike Brian, I have no sympathy for the banks. There is no such thing as an investment with a guaranteed return. And, an awful lot of these second mortgages were purchased at pennies on the dollar. AND they are all getting bailed out by the government anyway. I am sorry you were forced to over pay but I am afraid your only recourse was to buy a different house.
0 votes Thank Flag Link Wed Dec 25, 2013
Thanks for the advice. The extra money we paid out was going to be used for repairs on the home but we did look around during the short sale process and found nothing close to the house we eventually bought. It was a learning experience. I got a call from Auction.com the other day in regards to a survey and I will let them know how unhappy as a buyer I got sucked into this.
Flag Sun Jan 5, 2014
I'm thinking that the answer is no.

If the second decided to dig in their heels, then that's what they did. They believed that the home would sell for more if they were to see it pass through Auction.com and apparently they were right.

I don't know how much the first was and if there will be any money left over for the second mortgage holder on closing day.

As to there being "something not right" with the way things have played out...think of how the 2nd mortgage holder feels. Not only are they not going to be earning a profit on that loan but they are taking a loss of the principle that they originally extended to the seller when the loan was given.

If they read this thread they would probably feel that it's not right that the public believes that it should just be an accepted fact that any 2nd mortgage holder should just plan on accepting a $1,000 token amount at closing - and be grateful that they are even getting that.
Web Reference: http://plymouthhomes.tv/
0 votes Thank Flag Link Tue Dec 24, 2013
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