Irvine, CA 92618
I for one don't understand how the states attorney general(s) would allow this practice to continue. if you read thru these post you should get an understanding that if you are bidding on a property via their web site, you most likely are bidding against yourself.
Auction con should be the proper name for that site.
if you start bidding on a property that has a reserve, might as well pay full price via a broker, wait until it goes back to the lender. auction con will counter bid any bid including their own counter bids to jack up the property to the reserve. so you want to be screwed more? if it is owner occupied, add another 10k plus whatever damages which could be considerable, and if that prior owner had outstanding debts
there may be lien rights to follow against that property even thou it was foreclosed.
you are in a no win game with auction con. I have seen them relist a property maybe 9 times, i think part of it may be the lender trying to get the insurance from the loan..only if HUD knew what games were being played by these lenders to gain more monies from the insurance..or is it freddymac don't know..
again as stated by others here, you have no recourse against auction con, take a look at their closing docs. best advise stay away, report to your local attorney general..
I have not used auction.com but am considering it and have read through many of these negative reviews. Here's my attempt at separating what are real versus fake concerns.
But first I need to point out the obvious: the point of auction.com, like every other auction site, is to get the highest price possible for the seller. It is NOT to get you the best deal. If you get this backwards you will probably have a bad experience.
Common fake complaints:
They don't show the reserve: Think about this.... what would your opening bid be if they did? The reserve amount of course. By not showing it there is a chance you will bid above the reserve right off the bat. Remember the main point is to help the seller, not you. BTW, eBay has been doing the same thing for years.
The site bids against you: This is one of the first things disclosed on the property's auction page. If you're bidding tens, if not hundreds of thousands of dollars without knowing how this works upfront, you're being very foolish bidding in the first place. This is the logical way to manage the reserve not being published. You may not like it, but it make sense.
Time added to the auction: Another common practice with online auctions. Remember the original point. Any auctioneer's goal (live or online) is to maximize sale price, not get you a great deal. Sites often have rules that say they will add x minutes after the last bid to solicit a higher bid. They want to keep the auction going as long as possible to keep the bidding going higher. If you're upset over this, you don't understand auctions.
Reserves too high/closing was a hassle: These are not the site's issues. You are most likely buying a REO (real estate owned) from a bank that has completed the foreclosure process on the property. It is a painful process. PERIOD. They are a pain in the neck to deal with. If you're trying to get a screaming deal by buying this way, the hassle factor is part of the price you pay.
Poor customer service / rude agents: These could be absolutely true since no organization is perfect here. But also remember that these agents can be a reflection of the people writing the reviews. Think about it this way. The winning bidder calls the site's customer service because they're already frustrated that they can't get the deal completed. But the agent doesn't have any control over the bank or reo company to keep things moving. Everyone is going to end up frustrated in the scenario.
Hope this helps some of you to decide whether or not you want to try the site.
We won the auction, met the reserve, filled out all the paperwork, spent hours pursuing the transaction, paid $8000 earnest money and then after several days auction.com terminated the transaction. We had to wait several days to get our money back. I checked with the owner of the property (HUD) and they said they have never heard of auction.com. HUD sent me an email stating they always list with a real estate agent. We were really let down over this deal.
I have purchased (live) 6 properties from various auction companies. Auction.com is by far the worst.
1. Their "estimated opening bid" is a total work of fiction by some kid behind a computer. Case-in-point: I'm currently looking at a property where the owners owe $417k on the primary and they estimate it to open for $260k.
2. The last time, they had an estimate of 117k and at the auction, they said it had an opening bid of 117k but would not take less than 134k. Strange.
3. When they do get the real opening bid from the bank (usually 2 days prior to the auction), they rarely post it. Other companies post it and what it sold for at auction.
4. They won't divulge what the property really sold for.
I have actually skipped auctions run by Auction.com just to avoid the circus that they are trying to create.
I also did bidding May 17th on line.I am sure I was bidding with their computer.Plus towards the end of the auction, I would bid and there was only seconds left and BAM
more time was added. I should have been the winner but after watching the computer more time was added again.Four times I went through this.We could have continued forever,I dropped out. Now they can explain themselves to the FBI 1-857-386-2000
After successfully bidding the highest amount on a house ( At least 14th time on website to bid) I was instructed to jump thru hoops like a circus dog to download 80 docs and wire funds of over 7,000.00. Did it and met all requirements, told by rep from auction.com mortgage company would contact us as to the status. Well bid was declined, its been over 4 days now and my 7,000.00 earnest money not yet returned. and the price I offered was a fair price and it took wells fargo over 2 weeks to let me know the status of my offer. This was a waste of time for all parties involved. Banks should but the reserve out for public knowledge and save alot of time and BS
This is the worse company I deal with. Please keep out of them and save Time, money and headache.
I won a bid on Porter Tx.they take 2 months to do the closing. Diferent peoples take your file and no one know what to do. They sent me 2 extensions after the first closing date expire.
After all this c....p I told them I don't want to continue, theirs answer was " if you don't cooperate by sign the extensions you gonna lost your E. money ($12.000)
I never, eeeeeeeeever deal with this crap company again. They should not be on business.
tl;dr: This site is basically a collection of bad banking practices that caused the economic meltdown. Scammy, spammy, untrustworhty, and 100% bad for the buyer. I'd stay away. I wish I already had.
I went to auction.com to bid on a Freddie Mac property. It was on the market for a while, I went to look at it and after the real estate agent representing Freddie Mac wouldn't even take my bid because he felt it was too low. I called Freddie Mac to get a better understanding of their selling agency policies and in normal foreclosure bank fashion they used double speak and shifting to not actually say something that would give them responsibility. Nevertheless This experience made me feel like the listing on auction.com was legitimate.
So when the agent emailed me to let me know it was going to auction, everything felt at least normally legitimate. I was already a little annoyed because I feel like banks aren't awesome and the use of an auction site was to get the highest price while shifting all the undesireable contract terms and costs to the buyer. But, I set my top price lower to accomodate for this and registered for the site without even thinking about whether it was safe or scammy.
I placed the first bid, having read that they would proxy bid to try to brng it up to reserve. I was already annoyed with this, but it felt close enough to business as usual that I just decided to stick to my number and if it wasn't out of reserve to not worry about trying to buy it.
After I registered I placed a proxy bid at the lowest price and then watched it carefully wondering what it would actually sell for and if there was a reserve (not initially disclosed until the auction started). Sure enough there was a reserve, but the reserve amount was not disclosed. Frustrating, but business as usual for one sided power transactions. I got the first big in at 6 am. At about 10 am I was notified someone out bid me. I looked and saw the reserve was not met and just assumed it was the counter bidding process. I ignored it because initially the bid increments were set waaay to high at $10,000 and with a counter bid that meant it was already out of my top price. Then the bid increment was dropped to 5000. I assumed this was the bank realizing it messed up, as the property was basically ignored except for my opening bid and their counter bid. I watched it a bit more closely because something was starting to nag at me and because I realized that any smart buyer would *not* buy this property above a certain amount. Then I saw another bid, and for a second, thinking there was another bidder in the mix, thought about going up just $5,000. but that nagging feeing got to me again.
I realized that as long as the property was under reserve, in the pattern happening on this property, that the last bid was likely a counter bid. Which meant that auction.com had counter bid *twice*in a *row*. And also meant I was the only one in the auction.
At first I was accepting of the coutner bidding thing, pre-auction, just grumbling about how if there was a reserve price with a desire to counter bid like that, they should just start the auction at the reserve price. But during the auction it really became clear to me that when the seller is bidding to boost the price to the reserve, its *not* an auction. Its a negotiation. The site should not use this feature and even pretend to be an auction. Its absolutely shill bidding, and even when disclosed, its dishonest and lacking integrity. Its absolutely the bank's (and auction.com by being the mediary that sets part of the terms) desire to maxmize all the best things while shifting all the worts things about property transfer, but disguising it as an auction.
Its not worth the extra premium, the disencfranchising terms, that loss of protection of the inspection and title work as part of the contract, if the seller through the auction.com designed process, *bids against the buyers*.
I did a search then and came across this site and honestly my heart sank. This was a joint venture buy and its the other guys credit card and phone number on the account, I have to inform him of the risk that A) his credit card number might get stolen and b) he might get spammy calls from an auction site thats only supposed to deal with me, to try to bring up his bid. All because I legitimately thought this was a legitimate avenue based on working with a realtor and freddie mac.
I've only been to two other (live) auctions that were like this and I can tell you nobody wants to work with those banks or auctioneers again. The difference is, that if the second one gets caught, they'll get their license yank/the first bank ended up shooting themselves in the foot, but auction.com is allowed to run this scammy unethical shill bidding process and be legitimized by also ehtically-compromised mortgagers. Worse, the computer clearly kept bidding against itself, the reserve was never over come, and at the end of the auction, the listing completely disappeared, without any trace in the dashboard, history or on the site. Other auctions in the region that concluded are still listed, but marked over. This one is just gone, no trace. I'm guessing by the other reviews its because it didn't sell and it will be back on the auction site again until the house falls down (totally happens in this region, banks insisting on a certain price, dropping it only to still be too high given the deterioration, and then the city tearing it down). Update: Yup, a day after I wrote this review it appeared again as an auction, with the same upening bid, lower bidding increments, and no hint that it was already failed auctioned once. They're going to dragnet for a sucker for this house paying too much, and its going to be sad.
i'm giving two stars rather than one because, while the whole process was uncomfortable and misleading, even where they were upfront, they haven't actually screwed me yet.
I'd like to say I can't believe Freddie Mac would use this site, but the truth is, it and other mortgagers are probably just as home-sale-judgment-and-integrity impaired as the site, they've just had a much longer history to get themselves seen as legitimate in the way they operate business.
I wish I would have looked at these reviews and taken a pass. Now I need to worry about whether they will screw or annoy my business partner, potentially damaging our relationship, because I'm the one who suggested we bid on this site.
The name of the site is misleading because this is not a true auction, not as long as the seller can counter bid. Thats really negotiating while trying to trick buyers into think they are attending an auction with the rules and benefits of an auction and actually bidding. Call it negotiate.com or something else. Not really an auction site. Just another avenue for skeevy mortgagers.
Ohhh yes they know how to play you and they DO have a bunch of people bidding "AGAINST YOU" SITTING AT THE AUCTION.COM OFFICE! They have the timing down, the formula down, and the profitable arrangements with the banks to do this to you! Do not, Do NOT, DO NOT even fancy yourselves buying a home from this low integrity company. LET ME "take the hit" here and warn you. Buy "By Owner" or through a legit Real Estate Agent! You will go waaay sideways working with Auction.com and don't believe the higher stars reviews. I learned my lesson the hopeful, long and hard way with this company. Click out of their site and MOVE ON!!!
I participated this BS online auction for a house estimated for $230 000. I was the highest bidder with $225 555 when auction officially ended(+ you have to pay additional 5% over the final bid if you win when the "auction" ends) .Then after few seconds I received a call from a person that said bank is next to him and how much more can I pay !? So the "AUCTION" started to keep adding minutes and the bank's reserved price was never met till "THE AUCTION" really ended. House was "sold" for $246 555.
After 2 weeks house came back online for sale.
IN TWO WORDS-DONT WASTE YOUR TIME !!! THE RESERVED PRICE OF THE BANK IS THE MARKET VALUE OF THE PROPERTY.
This company listed my deceased parents home as a foreclosure. The home was still owned by the estate who had received no notice of the house being foreclosed. After further investigation, we learned that someone had stolen my mother's identity and opened a credit card in her name, to a po box across the state. After proving to the collection agency that she had passed away 6 years earlier, they wrote off the charges and cancelled the auction. We have been trying to contact Auction.com for weeks. We have sent them numerous emails, with court documentation proving the house is not being foreclosed, with no response. I have engaged in two separate live chat sessions (there is no number to actually talk to a real person with these people) with their representatives with the promise that this would be looked into and removed with no response. The false listing of our property is now impeding the legitimate sale of this property and has forced us to take legal action to have the listing removed.
Some of these reviews are hilarious. My favorite is how auction.com apparently makes a lot of money off the deposit... i know for a fact they have never once charged my credit card the $2500 fee. They put a pending $2500 charge on my Amex, but it never goes through. So there is NO way for them to have money in their account making interest. They do this to make sure the people bidding actually have money and are serious about bidding, not because they make magical interest from non-existing charged. Like who really believes those dumb posts?
I have purchased 5 properties via auction.com this year already. Some thoughts:
1 - YES, they use fake automatic bidding they call "Counter Bid". Hell, they literally state the fact on auctions. So why would anyone be shocked at this? If you are posting a review saying its shady, maybe look in the mirror and realize, you are not intelligent enough to read and should stay off the internet.
2 - Auction.com is a middle man. they are not bank, title holder, escrow company or anything else. They provide a marketplace to buy foreclosed homes from banks, nothing else. Banks suck. Banks are slow. Banks don't care about your timeline, they care about their internal process. If you want to deal with houses owned by people and have a more smooth process, check you local MLS and work with an agent. Buying from banks SUCKSSSS, but there is so much more upside if you are willing to do the work.
3 - Auction.com does not force you to bid. Figure out what you think the value of the house is, and don't bid above it. The reviews that say the reserve is too high, well again, the banks are dumb and slow. The house will not sell and it will just continue to be listed and relisted until they find a dumb buyer or they lower their reserve. this is NOT auction.com's fault. They do not own the house.
I only gave a 4 star because I am sure auction.com can do a better job communicating during the process, as needed. They also could do a better job providing access to homes if unoccupied. And finally, they will call you and try and engage with you to encourage bidding. I dont need this call. I respond the same way every time, I will bid what I think its worth and if the bank has a reserve higher than that, they should either a) hope for a stupid uniformed buyer to come along or b) expect to not sell the property and continue to have holding costs until they wise up and lower their reserve.
Good luck house hunting!
Tip for consumers: Don't bid until less than 30 mins left in process. If you see systematic bidding everyday to raise the price, that is auction.com bidding for the seller to get the price up. No need to waste your time bidding on something that will just be bid over until the reserve is reached. Save yourself time/energy and start bidding with 30 mins left, if you reach your max price you are willing to pay and it still says reserve not met, walk way.
We were contacted by several family members asking if everything was ok. They had seen our home on auction . com and zillow as a foreclosure and it was up for auction. I pulled the listing up and in fact it was pictures of our home ! The address was not correct , the description was not correct , (said it was 2 bedrooms 1 bath our home is 4 bedrooms 2 baths ) it also said property that was being auctioned had 10 acres , we only have 4 ! I have been working for 3 days to get our home pictures off their site . This has truly been a nightmare . We also contacted our bank to see if an error had been made and they said they have absolutely no knowledge of this and did not supply and information or pictures , our account was in perfect standing . People are currently bidding on pictures of a house that obviously is not for sale or a foreclosure ! A night mare to say the least
The house that I wanted was a repo. Bank had 10 offers so they decided to put it to auction. Move on to auction.com, we bid and "win." Next thing that happens is I get a call to fill in blanks (name, address, broker name, etc), then you need to sign contract within 2 hours, send money via wire within 24 hours, submit paperwork within 24 as well. Then my 115,000 winning bid jumped to 120,750. I ask what that's for, they say buyer's premium. I ask what that is, they say it's their fee. I have to pay them $5750? For why?! Move on to contract that only we can see, it's 52 pages. Have a friend look over it, it is very fishy. Basically inspection done before signing, must sign before utilities get turned on, utilities must be on for inspection, and not to inspect before bank officially accepts our bid (which they have 15 days to do so). I wasn't about to lose 6 grand over this if something was wrong with the house. I was told by auction.com's Lindsay Wyatt that she isn't a lawyer and can't interpret the contract, I said well that's my friend and my's interpretation. She said we aren't lawyers either. I said I know! She said we couldn't inspect the house because it was occupied. I told her that i viewed it 3 weeks ago and nobody lives there. She said she could only go off her paperwork. I said it was wrong, she didn't believe me. Then she says oh wait, you are right, DUH I'M RIGHT! Then she couldn't answer my questions and to call the bank's realtor. The realtor was also frustrated and he hadn't even been privy to the contract. He said he'd call the bank and get back to me, which he didn't do. Lindsay then emailed me saying they rejected my offer. I said the bank? She said yes. Then she needed me to email her a cancelation email saying why. I emailed "But the bank cancelled? Why do I havery to send a letter?" I never got a reply. Then 4 days later she called, very rude, you must email with cancelation today, I said I was gonna go through with the sale until the bank wouldn't let us inspect the property properly. She said that likely the bank wants to know we are serious buyers. Why would I pay for an inspection if I wasn't serious!? She then said she made a note of it but I needed to email with the reason by end of business day. I said I would try to do so. When she wasn't making any money, she was very rude.
I don't know how many people are involved in each transaction but it seems like it is up to the buyer to keep things going after you sign a contract. My examples- One house had a recorded $3000.00 sewer lien on it that I found out about when I tried to resell. Luckily the sewer bill was forgiven so I could sell it without paying it. Auction.com title search company should have been able to see that before selling to me through their preferred closing company. Latest purchase-Auction .com had me sign all document, accepted it and then never sent me a copy of contract signed by seller until I asked for it. I set up a closing because you have to close in certain amount of days. Their title company and Lawyer office didn't know anything about it. Servicelink won't return emails to my closing company about anything asked. Finally closing was scheduled but deed had not been prepared or sent to their lawyer. Lawyer was to receive deed on Friday and wire it to my closing company on Monday. Scheduled closing for Wednesday. Called lawyer that morning to see where deed was. They had it and forgot to send it. Have deed and closing statement but seller (Wells Fargo) had not signed yet. Maybe I will get to close today.... Since buyer gets stuck paying all of seller's closing costs. they really hit you good. My $20600.00 purchase has about $2500. in fees added to it from my closing company and auction.com seller charges. Third delay in closing.
You will see the same house listed 6,8, 10 times because it failed to meet an unpublished reserve. They now list a few homes with published reserves, but the published reserves are far above market prices. I have purchased a few properties from them, but nothing in the past four years due to unrealistic reserves. I have written to the people in charge and was told they don't set the reserves. In my opinion the lenders who set the reserves are totally unaware of local market conditions and this site is a waste of your time.
I am a Realtor, and was contracted to do proxy bidding for auction.com's internet clientele. I completed all paperwork and provided all necessary tax information... I worked for auction.com in Georgia on the first Tuesday of October, November, and December.
After not receiving payment with a variety of excuses, I have refused to do any further proxy bidding for them. I will be following up legally, however I want to share my story publicly so that people understand their shady behavior in a situation that is very clear and straightforward.
Thank you for your time and attention,
Sheila in GA
I was super nervous after reading all the bad reviews on here, but my experience was great. I think the people complaining have no clue how the auction process works. Auction.com is just the middle person, all these house are bank owned. You have to do your due diligence. The process is as good as you make it. We had a few issues with paperwork,(zip code was wrong), and I did have to make multiple phone calls to get it fixed but everyone was super nice, and communication was prompt. Some people might be angry that multiple phone calls where needed to fix the problem, but I bought this house for ten's of thousands under value, so I don't mind doing a little extra leg work. I wouldn't hesitate to buy another property through auction.com!
Amazingly poor experience that's now extending past 5 month.
No property, no refund, no support.After calling them today and talking to supervisor Jason who was in extreme rush and even can't talk straight, after I explained my situation and asked for the property or a refund he stated he doesn't know what I need.
Then of course a very quick bye and click.... sad man and can't handle the job.
I should be leaving a bad review because this way, everyone reading it will stay away and that will leave more chances for me to buy another home. But I believe in a good review for good service. I found a home through another website and the next week it was removed and placed on Auction.com. I was furious and now I had to give a deposit and do my homework on this site. After getting over my fears I bid, and though I was scared of being scammed, my fears were relieved once the process starting really getting underway (about 3 weeks after winning bid) then they used a third party closing company (service link) and about a month and half later I was signing my closing documents. When doing a search only look for Bank owned Properties, this way your dealing with the bank that own the property. Also don't expect to buy a gem. It's going to be a diamond in the ruff, or maybe you have to knock the property down because it's too far gone. but either way bid accordingly and you should be more than satisfied
Tip for consumers: Do your research on the property, but this is by no means a scam
We closed on our first auction.com property earlier today and the process from start to finish was very smooth. Fortunately, we chose to ignore the majority of negative reviews as it was clear that almost all of them had clearly not read through the auction.com rules or fine print.
We went into our transaction with open eyes and were not disappointed. The customer service team was amazing. Answered every phone call and returned every email. I had every question answered before I even placed a bid and after we won.
We would absolutely use the site again and be sure to due our due diligence.
I bid on one house and won it, then another. In both cases the deals were very good. All the stories of closings getting extended are true. These are mostly repos and take time. Expect a 60 - 90 day close. I lost one where I was the high bidder but under the reserve. It took 30 days but they rejected it (the bank). Remember these are repos and can be hard to get to closing, but if you get one you likely will get it at a very good price. These houses are also for sale locally so a realtor can come in and buy a house for her local client as well. The people working at auction.com are not as knowledgeable as they used to be. It is also an impersonal assembly line process so don't expect great service, to be remembered from previous calls or to get really good answers. But, they are not a scam and if you are trying to make some money you can do well. Not 2009 well, but well.
How are you getting away with this SCAM? Hundreds of bad reviews. I also believe its all about getting your $2500 deposit.They make a ton of interest and then one day you will hear they just kept all of it! I have seen the same house on here for auction for over a year.Really?Its been bid on but still no sale?
My home was placed on this site Auction.com from previous Lender Nationstar and my loan investor Freddie Mac. none cared!!!!!! I complained to everyone even court system and today my home is owned by someone else and we are being harassed 5 days a week with numerous people knocking. If it's happened to you please make arrangements it's a stressful headache
Customer Questions & Answers
Have your real estate agent search title. If the property is occupied, you will have to get the people out yourself.
I believe that the average potential buyer does not do their DUE diligence AHEAD of time. I first, read all the documents attached to the property I was interested in. Second, I drove by the property to check things out. Third, I went to the county recording office to see if there were any liens against them. Fourth, I ran the comps for the houses in the neighborhood and look at the rating for the schools within the district. Fifth, know what your limit is on what your final bid will be and do not bid over that amount just to win the auction. Other tips, try to get ahold of the agent that is representing the property and just ask them if they are willing to let you see the property inside, all they can say is no, right? I hope this helps. Wait, miscellaneous stuff, It is true, all auctions on this site are STRICKLY in favor of the seller.... Negotiating is near to none.
If you win the auction it is a binding contract. Contracts are to be E signed within like 2hrs I think. Most are sold as is. Due your homework before you buy! Mark
Because they are a bunch of unscrupulous hacks! Auction. com will bid against you to raise the price and the sales contract is skewed in their favor. I have bought and sold many houses over the years and I will never ever deal with this company again!
The low price attracts bidders like flies to poop. That being said a more ethical business practice I maintain would yield better results. Unethical practices limits their profit potential.
The best option is to go straight to the bank, if it's a bank foreclosure auction, and find who their listing agent/broker is. These sites are almost rigged to have the house go back to market or auction. That may be in the sites best interest, but not the banks... Especially if the time to pay property taxes is coming up. Not an answer i know, but take my word for it, don't trust auction.com with as important an investment as your home is.
That is private information that is kept secret from you. It is all weighted to the advantage of Auction.com. They can back out of the deal at any time but you cant with our losing your earnest deposit, Put a bid in but 99,9% is you will not get the property. Good luck with these crooks after you have given them all your personal information and credit card #s
Basically from what I can see it means it didn't sell. They seem to stick on the website after the auction closes but marked as sold when they sell. But I could be wrong.
Basically from what I can see it means it didn't sell. They seem to stick on the website after the auction closes but marked as sold when they sell. But I could be wrong.