auction.com scam (real estate)

Issue not resolved
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.

bf527fb
Was this review helpful? 398 1024
Had an experience with Auction?  Submit review ›
Is this your company? Learn about our business solutions
Basia

Nov 17 Pompano Beach, Florida

I can't understand why any REALTOR would be associated with this unethical company. They are just looking to unload unsellable properties. You can be paying as much as double for your property as you will never find out about all the moneys owed before you'll purchase and they will give you 2 hours to sign the contract and if you don't they will keep your deposit. Unbelievable!!! I'm looking forward to a class action lawsuit against Auction.com and any Broker associated with them.

0 0 Reply
Anonymous

Nov 16 Walla Walla, Washington

Everyone beware of this company!! I have just lost $5512 EMD to Chase bank because of a shoddy business practices. I cant even get a straight answer. I work very hard for my money and dont have alot. This company and people are the reason people goes nuts and shoots the *** outta the employees.
The lesson cost me $5512, but I learned it well. I will spend my every living minute trying to destroy both auction.com and Chase bank. We as taxpayers got soooo *** by bailing out these worthless ***. What is America come to?

0 0 Reply
Terry

Sep 26

Auction.Com are Scam Artists Pure and Simple!!! They take your money and do not reimburse you even if you don't win! They're horrible people!!!
STAY AWAY!!!

1 0 Reply
kenscuda

Sep 23

i have bought several homes from this site and all of them said reserve not met..But went thru the motions and contracts anyway. In all cases i received a call within 3-6 days confirming that the bank indeed did accept my high bid.. Yes the contracts are long winded and one sided. But luckily no problems. Ive used my own attorney on some and used their closing companies for the others..

2 0 Reply
FkBnks

Sep 20 Massachusetts, United States

Was watching an auction.com listing, saw it close at a reasonable bid and a day later re-listed as fresh auction item. Account Deleted. In the "regular" market also seeing ppl paying top of bubble prices for housing prices that can't be supported by local economy. It's a suckers market in 2014.

1 0 Reply
sue

Sep 16 Virginia, United States

Please DO NOT do business with this company!!! They are a company trying to steal hard working americans homes, including mine. They have my home listed as foreclosed and an auction date on the books, My lender tells me a different story completely, IT IS A SCAM PEOPLE PLEASE BEWARE!!!! THEY WILL TRY TO STEAL YOUR HOUSE!! So very sad that america has come to this, Watch your backs

1 0 Reply
CA specialist

Aug 13

If Auction.com is a scam, then why did Google just invest $50 million in their company?

1 0 Reply
Floridian

Aug 02 Tampa, Florida

Homesearch.com is not honest. The employees, who are not real estate agents act like licensed agents without being properly licensed. Bidders never meet the reserve and if do have to deal with real mean and rude people who doesn't act professionally. Banks must evaluate seriously the partnership with those scam artists.
Authorities must take action and the National Association of Realtors must take action now.

0 0 Reply
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.

5 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.

3 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.

3 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

2 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------

5 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.

3 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.

10 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....

4 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.

3 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

2 0 Reply

1-20 of 230 comments

Great comment! Would you like to convert it into review?

You will be able to edit the text before publishing.

You may also like

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