USHOMEAUCTION - Nightmare if you win the "reserve not met" auction

Escondido, California 3 comments

If you win the "Reserve not met" online auction, they will make you sending in 5% of earnest money next day.If you don't, they will keep your deposit.

If you do, you have more nightmare ... First they told you not to call them for the next 15 days, then the actual seller will try to sell the same property during that 15 days.

If the actual seller can't sell the property, they might let you have it.If they sell it, it will take you about two months to get your earnest money back if you keep calling them.

Review about: Real Estate Auction.

Comments

Anonymous
#660236

We bought a house sight-unseen at an auction.com live event, and got it dirt cheap, and we're now selling it for more than 3 times what we paid for it without doing any work.Ended up being a fantastic deal for us, but definitely a risk.

I got the feeling, however, that the property had first gone on their online auction. The opening bid price was quite a bit lower than what they said we would have to bid to get it (we were the only bidders), so I wonder if they had an online bid ("reserve not met") and then we were told how much we would have to bid to exceed that, such that if it didn't sell at the live auction they would go back to the highest online bidder to sell it.

So I'm not sure that I trust their online auctions, but I would recommend going in person to their live auctions.Worked for us!!

Anonymous
#422423

Thanks so much for the info.I was about to bid on a too good to be true deal for auction dot.com and I am a realtor!

It seems really fishy so I'm backing out.Thanks!

Anonymous
to alma Queens, New York, United States #885154

Alma , I know your feelings and we know when a deal it too good for be real.I almost feel in love on something but my hearth is telling me is a risk.

Wait and you will see!

If you don't care to give away your money go head and take a chance.

USHOMEAUCTION - Us auctions misslead me

Shallotte, North Carolina 0 comments

us home auctions i went all the way to myrtle beach convention center on march 22 to bid on a house and found a cheerleading contest there was no signs or any one who knew where the auction was relocated i was told by security i would have to go to raigleigh nc so i lost out on bidding on the house i am very pissed off us auctions you are very un perfessional if you are going to change a bidding location post signs or have a person redirect us to the new location there were lots more people turned away not just me

Review about: 5192Greenherondr28470.

USHOMEAUCTION - Advertizing neighbors home for 2 times its sold price

Phoenix, Arizona 1 comment

my neighbors lost their home and its listed n the ushomeauction.com sale for january 25 in scottsdale arizona, (#399) the house was bought for $63,000 and all of a sudden its "value" is listed by this outfit as "$139,900" and the place is a wreck, nothing in our neighbor hood is worth the stated amount that they purport to show as its value, no one could believe that it originally sold for $63,000!!!!!.

Review about: Real Estate Auction.

Comments

Anonymous
#58362

I have been to several us home auctions in different states and they tell you on line clearly that you must do your own due diligence prior to coming to what you consider a comfortable bidding price on any property.I even checked out properties in the uk and found that they had been up for sale for quite a bit less than the price listed as the "previously valued price" on the ushomeauction site.

But those prices merely suggest that the property was ONCE valued at that amount. Don't forget many people had their properties valued at higher than market values so as to take out 2nd mortages and home equity loans. And in reality property values have fallen significantly in the past couple of years so a property that was ONCE valued at $300,000 in better times, may have been on the market several months age for $200,000. You can't fault home auction for using the $300,000 price point to try and get the highest amount for their property listings.

After all they are marketing to the highest bidders for their customers/property owners.Due diligence means find out for yourself, do your research, don't just take their or anyone else's word for the information stated.

Ushomeauction.com/redec

Tampa, Florida 0 comments
Not resolved

Winning an auction does not mean u won the house.You do the paper work afterwards and informed there is a reserve price.

They take your 5000.00 check, thru a title company and have 15 working days to make a decision. My offer was denied but the home was relisted with a realtor the following day after the auction. Ten days after the auction i hear my offer was denied, Two and a half weeks after i get a reinbursement check back while they collect interest of your check. Thirty days later the home is up for auction again.

Bank in question is Washington Mutual.

WaMu, a bailed out bank.Is this legal, appears to be yes

Review about: Auction.

Consumer Warning: USHOMEAUCTION.COM/REDC misleading public

Hamilton, Ontario 18 comments
Not resolved

Simply put: Stay away from this company USHOMEAUCTION.COM/REDC

This company clearly misleading company and you could be scammed and fraud. Here are the reasons:

1. Previously Valued To price not necessarily means current value of the property.

2. Previously Valued To price are some times not even half the present value of the property.

3. Winning auction does not mean that you going have the propriety. At the end of the auction, they will sneak a document to sign stating seller approval required. If seller’s approval required, why would you go to auction? You could have simply write offer to Real Estate agent. Why would you waste paying high deposit? Are you even sure that you will get back the 5% of the auction premium that you paid for?

4. Seems like a lot of hassle and a lot of risk

5. WARNING!!!!! I have seen this happen in the Auction. You may win the auction. Staff may ask you to sign a document and pay and promising that you will get a copy. After you sign the document another Staff will come and may refuse to give you copy of the signed document. They may say it is their corporate policy not to give the copy of the document. They will claim that you have been provided false information by the lower level staff.

I have never seen any company not provided copy of singed document after promising to provide one. This is complete fraud. What will happen if you paid cash? Good Luck

6. Do not be deceived by the outside look of the property and some auctioned property are nightmare

Even after all this mess

Do you expect them to give free and clear title?

Do you expect to receive correct zoned property?

Do you expect staff will treat you any different for you?

Do you want to go through the night mare even after the Warning?

In my opinion STAY AWAY from USHOMEAUCTION.COM/REDC.

Review about: Real Estate Auction.

Comments

Anonymous
#286198

:eek

sad but true they got me..they ripped me off nad have yet to return my money...

They sold me a house that no longer existed. Athree bedroom 1883 square foot house that turned out to be an empty lot.

I paid for it in full and caught it before the closing so since it never went to closing REDC claims that it is not Real Estate Fraud. They are crooks!!!

Anonymous
#279735

REDC / USHOMEAUCTION is the worst of the auction companies.They use shill bidders, high pressure ringmen, and poorly trained - low paid staff.

You get what you pay for.Steer clear!

Anonymous
#191495

OMG, what the F. Can't anyone do anything without having to deal with sleaze, in this country?

Anonymous
#182186

REDC allows its sellers (including Fannie Mae) to place shill bids during online auctions. I will give you an example of a shill bidding pattern:

1465 E John L Ave Kingman, AZ 86401

Auction start date: 23August2010

Auction end date: 28August2010

Opening Bid: $9,000

Bid 1 - 9k

bid increment: 2.5k

Bid 2 - 11.5k

bid increment: 2.5k

Bid 3 - 14k

bid increment: 2.5

Bid 4 - 16.5k

bid increment: 2.5 k

So now the "current bid" is 16.5 k, and the next bid would have been 19k. The price is too high. Well, I check back a day later, and suddenly, the last two bids have disappered. The "current bid" is now displayed as 11.5k!!!

I write in to their online chat center and am told that the bids were revoked at the bidder's request. I ask how this is possible. Can I bid and then revoke my own bids too? No, I can't. I ask if the bidder was an agent of the seller, and get no response. The customer service rep simply refuses to respond to me. At all.

The above example is one of 4 suspicious auctions that I was tracking all on the same day.

Here's another example:

1568 Palma Rd Bullhead City, AZ 86442

Auction start date: 23August2010

Auction end date: 28August2010

Opening Bid: $15,000

Bid 1 - 15k

bid increment: 2.5k

Bid 2 - 17.5k

bid increment: 2.5k

Bid 3 - Initially...

bid increment: 1k

Bid 4 - 35k

bid increment: 1k

Bid 4 - 42k

bid increment: 1k

Why would anyone bid at increments 8-10x the minimum amount? This is for a house that "should" have sold for no more than $25k, based on recent historical bid prices for similar houses in the area. The seller is trying to do two things: Trick people into overbidding, and tamper with official "bid results", making it appear that these houses are going for much more than they really are.

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Anonymous
#178969

SLIMY!

I went to a REDC Auction today, and I thought is was very slimy. They disclaim everything they do, but it is still slimy.

1) "UNPUBLISHED, MINIMUM SELLING PRICE": They start the bids low to create the illusion that someone might win the auction at that price, but they don't accept winning bids below an unpublished minimum price. Why not just start the auction at the minimum price the seller is willing to accept? (The answer is they are trying to create the illusion that the opportunities at the auction are better than they actually are).

2) "WINNING BIDS MUST BE ACCEPTED BY THE SELLER": Even if you "win" an auction (ie.. the gavel hits the podium), the bid must be accepted by the seller. In other words, you go to the little area in the back of the room to sign paperwork and open escrow, and in fact your bid may not be accepted. Some "winners" have complained that at this point the REDC broker tells the winning bidder, "the seller didn't accept your bid of $75,000, but they would take $90,000". REDC has completely disclaimed it, but that doesn't make it fair and upfront dealing. It is good ol' fashion bait and switch.

3) SHILL BIDDERS: "Auctioneer may open bidding on a Property by placing a bid on behalf of the seller and may further bid on behalf of the seller, up to the amount of the Reserve Price, by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders". Put simply, they...

4) CHEESY HYPE: Blaring pop tunes, young guys in tuxedos, and power-point presentations quoting Donald Trump and other real estate moguls with positive quotes about real estate. I don't think anyone is going to *** for playing Michael Jackson tunes while showing pictures of Trump, but is this really the way you want to make a $125,000 purchase?

Now, do some buyers make below value purchases and make a profit on some of the homes sold at a REDC auction? Probably a few. But make no mistake, these guys are sellers agents and working to make a commission on the sale. There is nothing wrong with that in-and-of itself, but if you had a scale with SLIMY on one end, and HONORABLE AND FAIR DEALING on the other, REDC is a lot closer to the slimy end for the reasons stated above.

I have purchased property directly from Sellers, at Trustees Sales on the county courthouse steps, and from Realtors. With only a few exceptions, those experiences have been satisfying and profitable. I attended one REDC auction, and I won't attend again or ever buy a property that way. I found it distasteful enough to spend 20 minutes writing this message for others benefit. Buyer Beware.

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Anonymous
#157832

I wonder why it is not illegal YET to post a property without a POSTED reserve price

which shall be the starting BID. I hope the administration will get to it one day like the CDO.

Also it shall be forbiden for a mole to bid for the owner or banker

Anonymous
#153606

Similar thing happened to me too. I was the winning bidder (subject to seller confirmation), signed all the paperwork & sent through the earnest money.

I'm so happy with my "win" that a few days later I go back to look for more property to bid on and see the property I won is back on the auction block!!

REDC didnt have the decency to tell me that the seller had rejected the offer. I dont think they're a scam - just incompetent and unprofessional.

I wont bother bidding on anything through them again. Particularly as I'm still trying to get my earnest money returned from the Title Agent.

Anonymous
#137584

This was my 2nd time I was the highest bidder on a house and not accepted by seller.

first one they wanted more from me after the auction was over. Second time they called me on MY BIRTHDAY To tell me my Highest offer was not accepted after I spent all day and some more money and hours sending my earnest money by Fedex to the Title Insurance Co. for closing.

Anonymous
#137583

This was my 2nd time I was the highest bidder on a house and not accepted by seller.

first one they wanted more from me after the auction was over. Second time they called me on MY BIRTHDAY To tell me my Highest offer was not accepted after I spent all day and some more money and hours sending my earnest money by Fedex to the Title Insurance Co. for closing.

Anonymous
#93162

I had the highest bid on a REDC auction property in New York, a condo.They took 10% deposit.

2 weeks later told me that the seller refused my "offer" even though I had the highest bid.I am still waiting for money to be returned.

I have contacted Consumer Affairs and Attorney General.

Anonymous
#89041

The auction terms states that as long as active bidding is taking place, auction time will run over as long as there is no more than a 2 minute lapse of nonactivity.

On this date and time I began bidding;

1st bid,

November 21, 2009 8:19:23 23,500.

2nd Bid,

November 21, 2009 11:29:14 27,900

3rd bid,

November 21, 2009 11:29:59 was to be 30,000.00

however, with 11 seconds left I enterd my amount, with 7 sec left I confirmed my bid and the clock stopped and the auction ended. The clock stopped several times during the last minutes of the auction, but the auction was not suppose to end. Just following seconds of confirming bid it ended.

There was only a lapse of 45 seconds from of being outbid and re-entering and confirming my new bid only to learn the auction ended and the clock stopped..

I spoke to the online Auction Mngr, Chad Reed

at;Closing Specialist/Lead Phone: (800)776-7332

I raised these points to him and was told that I could be made 2 option if the seller turned down the offer. This is bad buisiness practice, this tells me that they can violate their rules at will so long as you don't, and they do impose stiff penalties.

This also tells me there is no quality control.

Marvin Klein

Anonymous
#78148

Very interesting coincident - rich dad / poor dad education seminars, some sort of recommended this auction to the public, as one of the good examples of such auctions...

Anonymous
#74606

Yes that is true they higher the price but nobody is making any bids I sow that

Looks like scam but lets wait I was last Monday for a second time for same house it is strange

First time the house was sell in the auction for 47500 plus 2500 auction fee so total 50k

But the house was under real estate agent listed for $40900

So what Is this????? Now The same property came second time at the auction

Why????

Anyway I win it for 16000 and 2500 auction fee but is over a week and no answer from them they have 15 days 3 weeks plus 1-2 months to get the money back So they used our money for free for months

And also I tried to see too many houses no one was open on that date

I think it is a scam

I will get new posts during my process

Anonymous
#61169

last year i won a propety a redc auction for $187,000.they told me the property worth over $350,000.

later i found out it only worth less than $50,000.

i wanted to back out but told by redc they would keep 6%.they finally robbed 6%of my deposit.

Anonymous
#55515

ITS A SCAMMM!!!!!

Anonymous
#50170

This company hides behind it's auctioneer status.Check out properties carefully.

Open houses were not open. Expect iimportant info not to be disclosed.

I bought a condo in Las Vegas through 11/22/08 auction. only later did I learn that the condo assn passed a new rule only allowing owner occupancy. Condo rules not available prior to sale.

HOA unknown prior to sale and a RE agent was no help in getting that info.

trying to reach someone at REDC was very difficult.They are not evil, they just have more on there plate than they can handle making them poor to do business with.

Anonymous
#47589

I was informed that there is a reserve and if you don't meet the reserve, you do not get the house. What they are hoping for is that people bid higher than what the bank owes on the house, so they make some money. You should always ask alot of questions before going the these type of places.

Anonymous
#43122

I felt some misrepresentation going on at auction as well, owner(bank) has to accept your bid, how is THAT a AUCTION :cry :upset

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