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auction.com scam (real estate)

Company Auction
Product / Service Real Estate Auction
Location Tallahassee, Florida
Category Auctions and Internet Stores
Views 4336
Monetary Loss
$158
 

Do not waste your time with auction.com. It is a front for a mortgage company in CA trying to unload foreclosed properties, not an independent entity.
They will:
1. NEVER reach a reserve amount, no matter how high you bid.
2. Use your "bid" as a means to determine value. Bid will end without a "winner" and you will receive a call congratulating you on your "win". If you read their rules, a "winning bid" is when the reserve is met, but they will not acknowledge that fact.
3. They provide you, the "winner" with a 41 page contract and direct you to execute within 20 minutes of receiving it. (that's not sarcasm, it is in their rules). The contract is EXTEREMELY one sided, taking all of the Buyers rights away. READ EXTREMELY THOROUGHLY - I wasted $ 158 for a real estate attorney to review this thing. He laughed at it.
4. They require $5000 min. earnest money upfront before they even take your offer (not "bid") to the lienholder - American Home Mortgage (themselves), knowing full well that the lienholder (themselves) will not accept it. This is on top of the $1000 pending charge they place on your credit card just for the privilege of bidding.
5. The purchase agreement is ALWAYS incomplete - no legal description of the property or preliminary title report is ever provided, but the agreement requires that you sign that you have received and reviewed them. They will NOT provide the missing documentation when you call them.
6. When you finally figure out this is a scam and wihdraw, your $5k is held up for an unscpecified amount of time, less the unspecified "administrative fees" you have given them permission to deduct from your earnest deposit (theoretically it could be 100% of your deposit).

In short...STAY AWAY FROM AUCTION.COM. It is a complete waste of time. Remember, if a deal sounds too good to be true.... I forgot that momentarily. 3023956

 
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Apr 18 
Wow . My wife and I bought a nice home on the largest lake in our county. It was on the market for around a year. I could not get a return call from the number on the sign in the yard so we contacted a local broker. He wrote a purchase offer on Thursday and told us on Monday that they could not except any offers that it was going to go to action in a few days. He told us we could go to action .com and register and we did. the minimum bid was 13000 less than we had offered.So we bid. We waited and watched and were willing to bid higher but it never changed. On Monday I received a call telling me I had won the bid. Im not very computer savy but I did read and understand all of the thirty to forty pages of agreements. I Have very good credit scores and had been preapproved way in excess of the purchase amount. The bank took forever , Chemical bank ,I wished Id went to any place but there because it took nearly 90 days . Auction .com were very good and understanding about how slow the bank was and the bank helped communicate that to auction.com The 5 percent was the cost of doing business and monies you just fork over for their work and expenses . Then the bank hits you up a a few more in closing cost All in All I figure 57000 for the bid 3100 for the buyers premium and almost 4000 closing that amount was counting the 12 months of home owners insurance paid in advance. We instantly had about 30000 in equity and the market has added about 9 percent in the last two years. ... Show more
Reply to KC

Mar 28 
just won a bid on auction.com First day experience, horrible customer service.
- It takes a long time to get a agent.
- They say you have to rush rush rush (two hours) to sign a contract to remove all your buyer rights and send the deposit. If you don't do saw you loose the rights.
- I won at 1:30pm - 5:30pm still no contract
- I called every hour and every hour they say call in 1 hour.
- the online chat is useless, they tell you to call By reading all the negative comments I wonder if I call my credit card company to block the $2500 deposit and not wire the deposit money if one day they send a contract... Will keep you posted guys to tell you how much money I lost, but that's probably my first and last auction.com bid. Smell like a nation gigantic scam, I was planning to bet on more properties but now I will for sure keep my money and drink. Will be more enjoyable this way.
Reply to AuctionNotSoHappy

Mar 24 
Wish I would of known all this information before I made my bid. I signed the contract and deposited the Earnest Money (2500) to a Wellsfargo account. I am still pending confirmation from the seller, which happens to be Nationstar. Not sure what I should do next. Can anyone provide any guidance?
Reply to Trainee

Mar 31 
It took Nationstar to approve my winning bid in7 days. I wired my EMD 3 days after I was the winning bidder sold subject to seller approval. I wired 5% of the purchase price of $300K ( not sure why your EMD was only $2500). Buyer's agent will get 1% commission, so always have your agent represents you thoughout the process. My agent, Ultra Escrow and auction.com helped me to get the house I won.
Reply to Donna

Mar 22 
I was winning bidder on a house in Bay Area California in Dec 2012 and closed by the end of Feb, 2013. My house sit long time on escrow because Nationstar acquired this property from Washinton Mutual Bank, but did not transfer to their name, that why my house was still under the previous homeowner's name, and they still lived in the house at that time. It has been a scary experience but I got the house finally, and it has big sum of equity. However, I may not buy house at auction.com anymore because their prices now are almost same as current market, and we have to pay 5% premium, which will add up the purchase price.
Reply to Pat

Mar 11  from Indianapolis, Indiana
On June 19, 2013 my client was the wining bidder ($1.35 million)on a shopping center in Indianapolis Indiana subject to approval by the seller. On June 20,2013 we were informed by Auction.com that our winning bid would not be presented to the seller for approval because after the auction closed a higher offer came in. What is the point of an auction if bides are accepted after the close of the Auction? Action.com did inform us that we could increase our bid if we wanted too. At that point I informed Auction.com that we would NOT be increasing the bid. Also, based on this and other issues with Auction.com that we would no longer be bidders on there site. Auction.com is a scam.
Reply to auction.comisascam

Mar 06  from New York, New York
I suggest people files complaints with BBB - the company does not display simple information like highest bid won or bidding incremental history - seem staged and computer generated to me. link www.bbb.org/orange-county/Business-Reviews/internet-auction-service/auction-com-in-irvine-ca-100108480/complaints#breakdown
Reply to bobolow

Mar 05  from San Diego, California
Totally agree with all the negative comments. If you are interested in bank short sale properties just offer on property to bank and seller directly, not through this scam and avoid the 5% extra fee even if by some miracle all the "issues" work out out.
Reply to Caengr

Mar 03  from Indianapolis, Indiana
my question ...if are the winning bidder and u signed the contract and u paid the 10% and u find out later that u have to pay to get the title clear or any other unexpected issue or for some reason you are not happy with the deal , can u get your 10% payment back and if not can they force you legaly to pay the balance and what would be the worst u can face
Reply to abraham

Mar 03  from Indianapolis, Indiana
my question ...if are the winning bidder and u signed the contract and u paid the 10% and u find out later that u have to pay to get the title clear or any other unexpected issue or for some reason you are not happy with the deal , can u get your 10% payment back and if not can they force you legaly to pay the balance and what would be the worst u can face
Reply to abraham

Feb 27 
Something really needs to be done about this!!! I am interested in a property on there, but like all others it keeps going up 250.00 a time in the last second (like someone has been doing that for the last 2 HOURS!!!). There should be something we can do!!!!
Reply to MDLAWSON

Feb 17  from Whitehall, Pennsylvania
I just recently bid on a house. Only two of us bidding on house. I finally stopped at 132000. The company called me back to say the other partt "dropped." But didnt hear anything back. So I called they said they received a bid from another for 170000.
STAY AWAY!!!!!
Reply to Anonymous

Jan 14 
I won a property above reserve(reserve MET) provided funds and within a few days my funds were returned cause they changed their mind. (back door better offer?)
it sold for 2x my bid later and then flipped for 2x again...
tried to bid on local properties. they went higher than my bid but reserve MET... next auction around-they were up for sale again.
customer service a JOKE!!!
chat ended by agent before my questions were answered.
WOW... same experience as with phone support. I guess if you have monopoly on foreclosure auctions-you can treat customers like trash. too bad. how many of these positive reviews are by employees getting a free lunch for every positive comment or review?
Reply to winner

Jan 10 
auction.com provide fake bid too. even allowed by law?

"except where prohibited by law Auction.com has the right to enter a bid for the property during any auction to
encourage bidding (but not as an offer to purchase the property)."

so funny :?
Reply to hawson

Jan 10 
believe it, away from it. waste time, waste money.
Reply to oscar

Jan 08  from Lander, Wyoming
Spread the word and stop using auction.com! Viva la revolución!! Down with the greedy bankers!
Reply to James

Jan 08 
Auction.com is a totally scam. Real estate market will collapse in the next 6 months. People are idiots for buying at these prices. The banks win again....
Reply to Omar

Jan 07  from Toronto, Ontario
Thanks very much for this information. certainly helped me to make a big decision.
Reply to Anonymous
 

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