bostonbubble.com

[john p]

I think this is out of the whole "time share" model of selling. An ex-girlfriend got a "deal" on a vacation and on our flight over she mentioned that we had to go to look at a timeshare. It was the most revolting experience I had ever had. I think they dropped their price from like $20k to $1k for a week or two of time. Essentially, you paid for a mortgage for the time and then a "maintenance fee". Now the maintenance fee per day was about what you'd pay per day if you were to go to a hotel, so they could have given them away for free and still make money. Anyway, there were different people at different levels that would corner you, try to intimidate you etc. We were offered one for $1k and we declined. We met up with an older couple and they told us that they bought one for $10k.

You know we wouldn't have sleazy car salesmen, mortgage brokers, realtors, time share salesmen, etc. if there weren't total suckers, dumb turkeys out there asking to be ripped off. These people have no shame or professional code of conduct.

I hope people go back and read JCK's post again, he is totally on the money; if they had two reserve prices, how is this any different than any other type of sale? The whole thing was a scam. Of course our incompetent government most likely doesn't have regulations to stop these scams so it might not be "illegal".

My main point is this: you need to filter the sleaze out of an industry and before a State grants a license to practice they need to have filtered out the scumbags who will prey on good folks. It is like one of the main organizing priciples of government to protect your society. We couldn't manage the Big Dig contractors or even the mortgage industry and we're giving amnesty to those hurt by a self created hardship. What the hell are we doing asking for casinos? Are we going to bail out people that lose at blackjack?

[the bidder]

I talked with all the related pwesons for the auction. The only choice I can have is to give up and take back my deposit. Otherwise, I have to keep counteroffering with the bank. I ddidn't want to waste my time any more on this auction property, so I took back the property. By the way, the selling bank is Option One Mortgage Corporation from CA. I found they put the property on the REDC website for post-auction sale and the property was gone in a few days. I was wondering whether they were saling the property at the same time while participating the auction. While we were almost closing, the "Option one Mortgage Corporation" happened to find a new buyer. Hopefully, next time there will be less people like in a similar situation. In such kind an auction, only two results will happen. 1. You get a problems-burden property that sellers are happy to get rid of. Because the buyer will never have a opportunity to fully assess the property and there is on protection at all for the buyer. In another word, only those properties sold higher than marker value will finish the deal; 2. You waste tons of time, energy and bubble-like hope and happiness with absolute dispointment at the end.
Good luck and thanks for all the suggestions.

[JCK]

Thanks for the update. The whole thing is a scam. Sounds like there's absolutely no benefit to the buyer in participating.

Fundamentally a dishonest process, although I bet they've found some way to make it legal...

[Shoeshine]

thanxs for update

I have yet to see a North Middlesex County property close .


I check the website , www.lowelldeeds.com everyday .

Something seem fishy
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[potential bidder]

Auction is taking place here in az tomorrow and sunday. Thank you for the update so I don't have to go waste my time at the auction.

The house I was interested in I was told sold at the last auction for 200 k but the bank refused the offer. They have set the starting bid even lower at 99k and said they will sell it at whatever it closes...

After reading your posts, somehow I find that hard to believe. Thanks for the updates and I will spend my sunday afternoon at the golf course

[rgerber]

We bid on a countrywide owned house (vacant) in Ojai Ca. they were asking $530,000, we offered $400,000 cash and no counter. then it turned up on REDC auction set for 4/16 with starting bid of $249,000. Thanks for all the info. I had lined up my real estate agent to bid, but not sure it's worth it.

[Shoeshine..]

Update :

Since I lasted posted , some of the properties I saw auctioned off have Closed .

So it is possible to get a very good deal at these auctions .

Just beware of shills in the crowd
and phony bids coming from the auctioneer !

The auctioneer is allowed to put in fake bids !!

I will try to update further in next two days .

I know the two properties I was most interested in Both closed .

The closing took far longer than the 30-60 days advertised .

Both closing were almost 90 days out .

Note , Another one of these auctions is being held in Boston
March 29th I believe at the Hynes Convention Center

Mostly Non Boston Properties

Real Estate Disposition Corporation ... REDC is the outfit running the auction

UShomeauction.com/REDC is their website

Caveat Emptor to all

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[JCK]

These things sound like it's next to impossible to get a good deal, but very easy to end up with a property that's in worse shape than you thought.

Caveat Emptor indeed. I would stay away, unless you understand that (a) your winning bid can later be rejected by the auction house and (b) you may be buying a place that's in absolutely terrible condition.

[KLGSB]

I went to the auction in San Mateo, CA. I bid on several properties and was the winning bidder on three. I was shocked to find out weeks later that the seller didn't approve my offers and my deposit would be returned to me shortly. I looked up properties from previous auctions and was shocked to see that over 90% of them never sold. The whole action is a scam. They get 10% of the people to offer more than the house is worth and make a forturn.

[Shoeshine]

REDC Real Estate Disposition Corporation is not on the up and up, imo
they have got themselves in trouble in Massachusetts more than once
Caveat Emptor

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[Cal_REDC]

In my case, the bank (CountryWide) was obviously fishing. Purchased Home at San Jose auction. After the 15 business day recession, they declined and sent back deposit. 2 weeks later REDC had a "special" auction of properties that "fell through" from the first. I went and bought the exact same property for 15K more. Even before the recession period was over, they listed the property for sale on our MLS. I wasn't advised and they still had my deposit. Thought about reporting to Atty General, but figured I'd already wasted to much time on this.

I think the serious hype given to the Starting Bids in the info-mercials is borderline fraud if difference between it and what they will actually take is well over 60k.

Good Luck - and be careful

[Florida Buyer]

THANKS TO ALL OF YOU THAT HAVE POSTED YOUR BAD EXPERIENCE WITH THE REDC AUCITONS. I WAS PLANNING TO GO AND PURCHASE A HOME THROUGH THE AUCTION. NOW THAT I HAVE READ ALL OF YOUR EXPERIENCES I WILL NOT BE WASTING MY TIME OR TYING UP MY DEPOSIT MONEY. THE POWER OF THE INTERNET BLOG IS REALLY GREAT! [/b]

[Guest]

REDC makes a big deal out of having properties with clear titles. After keeping $9000 of my money for 3 weeks (do not have it back yet) the seller "cancelled the transaction" because of a title problem!
Yea it is a scam - avoid at all costs!

[Greatinvestor]

I won a bid on at a forclosure auction in Septeber 08, closed in October and got the best deal of my life. If you know what you are doing and research the market you can and will get a great deal

[Another successful]

Hi "a succesful". I just got a property through REDC in the Phoenix Auction. Seller (Bank) took two weeks to sign the contract letter..I am wondering if you got denial from the bank even after it signed the contract with you..Please let me know..I am at the escrow stage right now..
Thanks for your help..