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Shoeshine
Joined: 10 Nov 2007
Posts: 38
Location: Greater Lowell MA
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 Posted: Mon Nov 12, 2007 4:30 pm GMT Post subject: |
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http://www.ushomeauction.com/terms.php
TERMS AND CONDITIONS
In defense of the Auction Company,
The Auction Company,
Real Estate Disposition Corp. , specifically states
in the Terms and Conditions that the auctioneer
is allowed to bid for the Bank or Seller.
Section 3 of Terms and Conditions states:
3. BIDDING AND BUYING AT THE AUCTION
Reserve Price. All Properties have a Reserve Price, meaning the Seller of each Property has established an unpublished, minimum selling price. The starting bid is not the Reserve Price. In order to become the Winning Bidder for a Property, a Bidder must meet or exceed the Reserve Price and have the highest bid. The Auctioneer may open bidding on any Property by placing a bid on behalf of the Seller. The Auctioneer 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. If no bidders meet the Reserve Price, the Seller is under no obligation to sell the Property. The Seller may withdraw a Property at any time prior to the announcement of the completion of the sale by the Auctioneer. Auctioneer is not acting as an agent for any Bidder in any capacity, and is acting exclusively as the Seller’s agent.
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Not sure how many people would bother to read the Terms and Conditions.
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admin
Site Admin
Joined: 14 Jul 2005
Posts: 1826
Location: Greater Boston
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| Posted: Mon Nov 12, 2007 5:59 pm GMT Post subject: Re: Auctions |
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| JCK wrote: |
I'm sure it's psychological. |
That is exactly my thought. It strikes me as manipulative. I wouldn't go so far as to call it unethical, since they do disclose the practice beforehand, but it makes me hesitant to go to one of these auctions because there is no way to know beforehand if the reserves are realistic.
| Shoeshine wrote: |
The Auctioneer may open bidding on any Property by placing a bid on behalf of the Seller. The Auctioneer 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
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I was just about to ask you whether being outbid by $5K each time might have been the result of an automatic bank bid.
| john p wrote: |
I'm also seeing the term "bubblehead" being thrown around. Is a bubblehead someone who contributed to the bubble like a realtor or sleazy mortgage broker? or is a bubblehead a new buyer that is a bit more guarded because of the documented predatory practices of the aforementioned?
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It's a term that I first heard on the Craigslist forums, used to refer to someone who believes that prices are in a bubble. It used to be used mostly in a derogatory way before prices started to decline (circa 2005), though it isn't so derogatory now that many "bubblehead" claims have been validated.
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zap
Guest
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| Posted: Tue Nov 13, 2007 3:16 am GMT Post subject: |
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| Quote: | | I think the place in Arlington he referred to was the one that I had my eye on. I'm glad I didn't bother trying for it, though, now that I know that they didn't allow people inside beforehand for that particular property. |
I was interested in that property as well, but only if it I could get it for way below market value. So the house sold for 480, plus 5% fee equals 504 for the buyer. A similar property 2 houses down is currently on the market for 530, which means it will probably sell for close to 504, with inspection contingency and peace of mind for the buyer. I’m glad I didn’t waste my time going to this auction. |
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Shoeshine
Joined: 10 Nov 2007
Posts: 38
Location: Greater Lowell MA
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A "sucessful"
Guest
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| Posted: Fri Dec 07, 2007 5:27 am GMT Post subject: The REDC boston auction was a big joke |
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I got a single family house at the REDC auction Nov 10th. It was supposed to be closed by Dec 3rd, within 3 weeks as indicated by the terms, which I now firmly believe is exclusively for the buyer. I finished the mortgage about 1 week after auction and waited and prepared for the closing until yesterday my counsultant at Countrywide called me to ask whether I know that my bidding was rejected by the seller. No one else ever notified me of this until this moment. I did checked out with the closing law office a few days ago. They told me all the closing were postponed to Dec 13, agian without any notice if you didn't ask. I had to call around the for the auction manager?, the law office, some assessor office... yesterday and today. After receiving 10-20 "leaving your massage", I finally got someone by repeated calling this afternoon. They were telling me the seller rejected the bidding on Nov 30th (after Countrywide's assessment, which was about 40K higher than the bidding price). I only have 2 options. 1. Paying 31K more than my bidding price; 2. signing a cancellation paper. Both my consultant and myself couldn't believe it!!
I did check out with the purchase agreement. There is one sentense saying that if seller is default, the buyer can only get back their deposit as total remedy! What can I say?
Does anyone else have similar experience with mine?
Is this a joke?   |
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john p
Joined: 10 Mar 2006
Posts: 1820
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| Posted: Fri Dec 07, 2007 2:27 pm GMT Post subject: |
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| Call the Attorney General's office. |
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JCK
Joined: 15 Feb 2007
Posts: 559
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| Posted: Fri Dec 07, 2007 5:11 pm GMT Post subject: Re: The REDC boston auction was a big joke |
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| A "sucessful" wrote: | I got a single family house at the REDC auction Nov 10th. It was supposed to be closed by Dec 3rd, within 3 weeks as indicated by the terms, which I now firmly believe is exclusively for the buyer. I finished the mortgage about 1 week after auction and waited and prepared for the closing until yesterday my counsultant at Countrywide called me to ask whether I know that my bidding was rejected by the seller. No one else ever notified me of this until this moment. I did checked out with the closing law office a few days ago. They told me all the closing were postponed to Dec 13, agian without any notice if you didn't ask. I had to call around the for the auction manager?, the law office, some assessor office... yesterday and today. After receiving 10-20 "leaving your massage", I finally got someone by repeated calling this afternoon. They were telling me the seller rejected the bidding on Nov 30th (after Countrywide's assessment, which was about 40K higher than the bidding price). I only have 2 options. 1. Paying 31K more than my bidding price; 2. signing a cancellation paper. Both my consultant and myself couldn't believe it!!
I did check out with the purchase agreement. There is one sentense saying that if seller is default, the buyer can only get back their deposit as total remedy! What can I say?
Does anyone else have similar experience with mine?
Is this a joke? |
Sounds fishy/slimely to me. If they initially accepted your bid, It seems strange they can back out based on the assessment performed by your mortgage company. It's not like they were unable to do their own assessment (e.g., before the auction).
I would do as john suggests and call the AGs office. Find out if their initial acceptance of your bid constitutes an enforceable contract. This is a legal matter, and you will need a someone with the proper legal experience to make this determination. |
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REDC Bidder
Guest
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| Posted: Fri Dec 07, 2007 8:56 pm GMT Post subject: Counter-offer |
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| I got the person in charge of this auction and was informed that I can also make a counter - offer between my bidding price and the bank's asking price? |
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admin
Site Admin
Joined: 14 Jul 2005
Posts: 1826
Location: Greater Boston
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| Posted: Fri Dec 07, 2007 9:12 pm GMT Post subject: Re: Counter-offer |
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| REDC Bidder wrote: | | I got the person in charge of this auction and was informed that I can also make a counter - offer between my bidding price and the bank's asking price? |
This sounds to me like yet another psychological game that they are playing with bidders. Is this an auction, or is it an elaborate advertising scheme to reel in and manipulate potential buyers? I'd be pretty miffed if I were in your shoes and would be very tempted to offer less than my original bid just to send them a message (though obviously only after deciding that it's time to walk away).
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john p
Joined: 10 Mar 2006
Posts: 1820
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| Posted: Fri Dec 07, 2007 11:59 pm GMT Post subject: |
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If this was a qualification issue on your end, meaning that you didn't qualify for the amount that would be one thing. The fact that they are asking you to consider bidding up shows that this is not the case.
If Countrywide's appraisal was LOWER than your offer, I could see it being a risk for Countrywide or whomever held the title in the case that you did default and they were upside down (short sale). This is not the case because their appraisal was HIGHER. The fact that they think Countrywide has good judgment is another point you need to make.
If the auctioner or seller set the base price prior to the sale, you should never have had your offer accepted. If the auctioner had to announce at the auction that these homes weren't really "sold", it may have lowered the overall sales and prices at the event. It seems misleading to me to have a crowded room of people see "sold!" and a happy couple hugging in front of everyone. It's like they used you like a prop and then when they got you alone they screwed with you like a cat does to a mouse before they bite its head off.
We have to make an example of some of these people to send a message that this is the forbidden forest and you don't mess around with folks here in Massachusetts.
If I were a realtor or in the mortgage industry I would report this to my professional associations. There are decent real estate and mortgage professionals out there and you folks do not have control of things. It is time that decent professionals sieze control of the industry and offer regulations or new legislation to politicians that would outline ways to filter out some of these shady practices. |
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Shoeshine
Joined: 10 Nov 2007
Posts: 38
Location: Greater Lowell MA
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| Posted: Sat Dec 08, 2007 12:54 am GMT Post subject: |
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| A "sucessful" wrote: |
Does anyone else have similar experience with mine?
Is this a joke? |
A very interesting story
I also attended the auction , and bid on numerous properties
only to be outbid every time by bidders I could not see .
The room was very big , so it is possible the bidders existed,
thou i have my doubts .
I check the Northern Middlesex County Registry of Deeds site
on a daily basis ,
and have yet to see any of the auctioned properties close .
I sat with 2 guys I recognized from my Town , and they both
won a property at the auction . Neither guy has closed yet.
I will call one of them next week , and ask how the closing is going .
Of these two guys , the one I knew least , got into a loud argument
at the closing table with an auction rep , about the closing fees
and both of these guys went into the back room to discuss the closing
further . I lost track of both of these guys at this point , and never saw them again . The loud guy is a Shark and not someone to mess with lightly.
Both guys are investors and they won properties at ridiculously low prices .
I commented to one of them ,
that I doubt the Bank will except their offers.
He told me the guy at the closing table assured him his offer will go thru .
I will call ths guy next week , and ask what is happening .
I have read a lot of stories of people being contacted after the auction ,
being informed that their Bid has been rejected , and asked if they want
to Bid higher , in order to get the property .
I attended both days of the Auction (briefly) and was leery
of the whole process ( thou that didnt stop me from bidding .)
I though some properties went for ridiculously high prices ,
and others at ridiculously low prices , which further fueled my skepticism .
A guy connected with the auctioneer told me the Bank was accepting
90% of winning bids , but what else was he going to say .
I believe you signed a 14-16 page contract where you pretty
much signed away any recourses .
Interesting story , keep us informed of any updates .
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JCK
Joined: 15 Feb 2007
Posts: 559
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| Posted: Sat Dec 08, 2007 5:10 am GMT Post subject: |
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I wonder though, once they accept the bid, even if they have a 15 page disclaimer, they can't retain all rights of refusal, can they?
If true, the whole thing is a dog-and-pony show. "We only accept the bids that end up being over market, and reject all the below market bids, based on the buyer's appraisal."
Even if legal, it sounds like the whole thing is a scam, and it sounds like there's no chance of getting a getting a good deal. If you're not paying less than market rate, then you're better off buying through normal channels which allow for basic buyer protections like inspections and other contingencies.
Still might be worth complaining to the AG. |
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Shoeshine
Joined: 10 Nov 2007
Posts: 38
Location: Greater Lowell MA
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| Posted: Sun Dec 09, 2007 3:29 pm GMT Post subject: |
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The following is a link to properties that were auctioned off
at the Hynes Convention Ctr
that supposeively have fallen out of escrow .
The auctioneer emailed me this list .
Fallen out of ESCROW is a euphemism for ...
The BANK wouldnt accept the winning bid
because it was so low .
I expect far more of the auctioned properties
to end up back on Realtor.Com
The auction , run by Real Estate Disposition Corporation, ( REDC )
was NOT an absolute auction .
There was hidden reserves and rights of refusal by the Bank .
I believe the auction was simply an alternative marketing ploy ,
and the Banks were not that happy with the results .
The Banks are having a hard time accepting the reality
of the situation , namely the junk, (homes) they own
are overpriced in the post bubble world.
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Shoeshine
Joined: 10 Nov 2007
Posts: 38
Location: Greater Lowell MA
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JCK
Joined: 15 Feb 2007
Posts: 559
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| Posted: Mon Dec 10, 2007 2:40 pm GMT Post subject: |
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| Shoeshine wrote: | The following is a link to properties that were auctioned off
at the Hynes Convention Ctr
that supposeively have fallen out of escrow .
The auctioneer emailed me this list .
Fallen out of ESCROW is a euphemism for ...
The BANK wouldnt accept the winning bid
because it was so low .
I expect far more of the auctioned properties
to end up back on Realtor.Com
The auction , run by Real Estate Disposition Corporation, ( REDC )
was NOT an absolute auction .
There was hidden reserves and rights of refusal by the Bank .
I believe the auction was simply an alternative marketing ploy ,
and the Banks were not that happy with the results .
The Banks are having a hard time accepting the reality
of the situation , namely the junk, (homes) they own
are overpriced in the post bubble world.
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It may be worth letting someone in the media know, if the whole thing is in fact legal. I realize that many are skeptical of the Globe's ability to do a hard-hitting story on the RE market, believing that they are too closely tied to their RE advertisers, but this strikes me as a phenomenally interesting story.
Why the auctioneers would need a two level reserve system is beyond me. Can't they price out these houses ahead of time, and set the reserve appropriately? Why go to the trouble of accepting a bid, then it, risking bad publicity and angry bidders? |
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