auction.com scam (real estate)

24 of 24 Auction Reviews
Jan 11, 2012
review #288077

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.

68b73df
Was this review helpful? 376 1010
1.4
Had an experience with Auction?  Submit review ›
Is this your company? Learn about our business solutions
CAPTCHA
Anonymous

Jul 18

I also just had a similar negative experience on a commercial property auction with auction.com. After being congratulated on having the winning bid, waiting for hours for the contract that I had to accept within a half an hour, wiring the 10% deposit, confirming the wire reference, etc., I was informed tonight (30 hours later) that my offer was rejected by the seller. No explanation. I have now wasted legal time, several site visits, title work etc., plus will be embarrassed to tell my friends, co-workers and family that it was all a waste of time and money. Of course, the one-sided documents give them the right to do this, but it certainly does not seem very ethical. I blame auction.com, the seller (a large public corporation) and their advisor for their faulty process and poor communication.

2 0 Reply
Paula Home Owner

Jul 12

They are incompetent !!!!! I came home from work to find an auction sign posted on my door and in my yard. They had the WRONG address!!!!!! Now I have to post no trespassing signs in my yard, as pictures of my home are on line. I have contacted the local police department to notify them that this company has now put my privacy and my families security in jeopardy of strangers entering my property...which is NOT in foreclosure ...as well as the humiliation of their inept research to post their signs on the correct property. Having contacted Auction.com...with no response...I feel legal action will be called for. Caution to buyers to confirm the properties that they list are actually the properties that are available.

2 0 Reply
Joe

Jul 11 Orlando, Florida

I just bid on a property and was the "winner" and went well past the reserve. I sent in the paperwork and then they called me several hours later and said the asset manager had pulled the property AFTER the auction was completed and would give no further explanation.
Am awaiting an explanation from the listing broker who pretty much claims he doesn't know anything either.

2 0 Reply
JonasSmith

Jul 11

Genuinely good thanks, I do believe your trusty audience would probably want a great deal more blog posts of this nature maintain the good hard work.

0 0 Reply
Anonymous

Jul 07

I have bought three through them now and have had no problems

1 1 Reply
Anonymous

Jun 14

I was watching a live auction and noticed the reserved was met. Suddenly, it changed to "reserve not met" and the auction is ongoing.
Auction.com allows to bid for the seller until the reserve is met. -----red flag-----. They are allowed to raise the reserve during and auction; therefore, they can always bid for the seller.
------stay away------

3 0 Reply
THIEVES12

Jul 07

Thank you for your comments, I was thinking in going trough auction.com to buy a house , but now whatever transaction I want to do, I always go to the interned reviews first, so I think this practice will save me money, time and get involved in a nightmare.
Maybe the people who was scammed by auction.com can initiate a class action against them.
Thank you again for posting your experiences.

2 0 Reply
SueEm

Jun 08

Thanks god for this forum. I just register to bid and put a $2500 hold on my CC, but after all these negetive comments, I will stay the *** away. Seem like they can just make millions on bs fees just by rejection a winning bid. They say the bank rejects the offer, but they will not show any proof. This site should be shut down by the government and be force to pay back all the damages to the bidders.

6 0 Reply
Jake0000

Jun 01

Just became a winning bidder on auction.com. The comments on this site and other sites really make me nervous. I already had a bad feeling after being pressured to sign the contract within 2 hours of winning. I'm also really concerned that they will not let me inspect the property, even though it is vacant. I'm beginning to think there is something wrong with this picture....

3 0 Reply
Hard Working

May 29

I'm a real estate broker in state of Wa. We had listed the property and had a full price offer at 224K. Nationstar took over the mortgage and forced us to list this property in to auction.com. Property was sold at 180K, auction accepted this lower bid and family who submitted their 224K offer lost this home to online bidder. Interesting how taxpayers paying for this game. I'm hoping that this practice will end soon.

2 0 Reply
joelpaez

May 21

I have seen similar houses on auction and then no information on them from a local realtor agent. Very fishy!
-Joel

1 0 Reply
Real Estate Broker

May 16

I was the listing broker for Nationstar. Was told that I would receive a minimum commission and after signing all the paperwork. The next week was told it was going to auction.com. I did the open house, showed prospective buyers, and one of my buyers bought the house. He was asked if he had an agent and gave my name, but auction.com did not put my name in as representing the buyer and kept the selling side of the commission. Agents beware!!! Minimum of commission was $1250 per listing and selling side. When it went to auction.com, commission was reduced to 1.75 for listing broker or minimum of $750 less $150 technology fee. Needless to say, I was paid $600 to market their property and that did not cover the gas to check on the property weekly and time to do all their reports. :(

1 0 Reply
KC

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

2 0 Reply
AuctionNotSoHappy

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.

1 0 Reply
Trainee

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?

0 0 Reply
Donna

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.

0 0 Reply
Pat

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.

0 0 Reply
auction.comisascam

Mar 11 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.

1 0 Reply

Showing 1-20 of 220 comments

 
×
You were reading a complaint about Auction.
Filing a new complaint about
×