OfflineJill & I just went to a local REDC Auction in Ocala,Fl. We pre-registered,viewed the terms & conditions,plus talked to two different customer service reps, came with a cashier check in hand & was ready to bid.
The property came up that we were interested in, & we won the high bid at $ 20,000; there is a 5% buyers premium or % 2500 fee (whichever is greater). Knowing all that we we taken from one person to another, until I was asked for POF(which nobody said we needed at this time on the phone, but were able to get it from on-line banking. Then taken to two or three more people until finally began to fill out paper work. After 30 minutes of signing, we were told that we had to Pay For The Property IN FULL TONIGHT !!! We said no way, we have purchase six or seven REOs before & have never paid in advance prior to closing, plus were not told this by their telephone reps. I picked up my check & began to leave, when an Auditor told us to wait, & went & checked with the VP, & then informed us it was ok to just put down the $2500...How nice of them.
Then it took another hour of paper work to complete the contract/addendum. They told me their copiers were not working properly so ,instead of waiting another 20 minutes to get light copies, they would email us the copies tomorrow. What an Experience.
Our advise is make sure you know exactly what your getting into first & have alot of patience. Please keep in mind that Jill & I have purchased dozens of properties at county auctions before & it was always a piece of cake !
BTW, the bank has 15 days & could reject the bid, but yet they have the closing set for 8/19. Now the funny thing is we made an offer on this house three weeks ago at $ 19,000 & the bank wouldn't even counter,
go figure.
Warning!!! - REDC-Auction.com
Posted on: Thu, 08/05/2010 - 03:42
Warning!!! - REDC-Auction.com
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- by gceriani
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Jill found in the terms & conditions on their website, you DO have PAY IN FULL for properties $ 25,000 or less. That was my mistake for not seeing it since the policy had been changed in the last 3 weeks. Unfortunately the two customer service reps didn't mention that.Thanks, Gary
Thanks for the heads up Gary. We all learned a lesson through you and Jill.
best of luck with the property.
Richie.
I just filled out an online auction form last night to be able to put a bid in on a house in FL. I better check the fine print just in case.
Hey no problem ... we all need help from time to time to learn different
particulars. Good Luck, there are some great deals even with the buyers premium. There was an Ocala property that was valued at $ 440K a few yrs. ago that went for $ 145K; a couple of condos that were valued at $ 140K, went for $ 27K.
As a side note, despite wining the bid at this auction, the seller, the bank has up to 15 days to accept that high bid amount. If they reject it, the deposit is to be refunded within 48 hours.
I registered to so I could bid on properties online with redc but my credit card would not get accepted in order for the minimum down payment on the amount I was looking to spend. Then the properties I were looking at all had a reserve price that was not met yet. I was looking at a property locally to do a rent to own that was a foreclosure in which the bank had turned down many offers that did not match theirs so put the property up for auction with redc. So I asked the last listing agent if she hears more about the property if it does not sale by auction and if the bank still has it to contact me and I will give them my offer on the property. Over all I do not care for how they run with the problems I have had and do not have that much time to invest on their part of having things not getting done.
Shawn
was supposed to be a REDC auction property. Just as info for everyone on the REDC auctions, there are only 2 ways out of the contract with REDC, and that is building code violations or environmental hazards that are extreme. Do your due diligence FIRST! Learn from my mistakes. In my case, I brought in the county inspector and he condemned it, so I got my EMD back. But, read their contracts throughly BEFORE bidding! They're scary and you give up ALL control with them.
We watch the AAN auctions on DirecTv just to learn as much as we can about different areas. We are in IL, but it's still a learning tool for us. They've auctioned several of the Meridian condos at $30K lately, that they said used to go for about $150k a few years ago. What are the chances of those gaining to that value again? Even if you rented them out, seems like a decent deal. We aren't quite ready for auctions yet, but watching them on tv is great way for us to learn.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Jill & I have purchased dozens of vacant lots through county foreclosure auctions & they are slow & you can increase bids by only $ 100 at a time. Some local auctioneers that do houses are a little faster, but still manageable. But as for REDC, it is super fast & it takes only about a minute per property, it is not for the faint of heart especially since they increase the bids a couple thousand dollars at a time.
Just got the Hud Statement for this REDC auction sale today, it is set to close on Tues. 8/17 ... I was surprised at some of the closing costs, I know they are much higher than we normally pay at our title company, but what a difference, probably because it's a law firm;
Settlement or Closing Fee ...............$ 500.00
Abstract or Title Search ................$ 100.00
Tax & Lien Search .......................$ 200.00
then of course we have the county doc stamps & there is the title insurance policy, both are based on the purchased price.