Auction.com

I was the successful winner of an auctioned property in April... I met the reserve and was sent confirmation that I was the property buyer.
I submitted all documents on time as well as wiring them money (approximately $12,000) during the initial phase for purchasing the property... We called to try and get updates and were told everything was fine and that the sale was in the processing stage. After 3 weeks into the process, we called to get an explanation update after our title agent received an email stating the purchase was declined... they would not give a reason for the decline... Afterward, Auction.com RELISTED and attempted to RE-AUCTION the property 3 more times stating a higher value on the property... all three times the property failed to meet the reserve... After the fourth time, the listing showed that it was pending and the price sold was less than what our purchase price... For over a month, after repeated calls, I could not talk to ANYONE who would provide any info as to WHY THEY kept listing the property after I had WON the BID and had the HIGHEST and BEST OFFER on the property... IT took a month for me to get my money back from them and BUT they would not reimburse my wiring fees and other costs...

I did participated the fake auction as per advertised Auction.com via email and on the net. End of the auction period I was congratulated via email the Auction.com team me to be the highest bidder and met the reserve price too of that property in question.
I did followed their ( Auction.com) instruction and wire transferred the earnest money amount they requested. The next business day I did received a Purchase and Sale Agreement need it to be signed immediately by electronically to make the purchase legal.
The copy of the agreement was contained incorrect and/or unchecked information regarding my choice of closing agency was not listed at all. That was contrary to the verbal reassuring by Auction.com team member answering the phone.
However, the correction had to be made now. Moreover I need it a seller's signed copy of Agreement in timely manner to move forward with the closing.
It must containing the correct information to reflect my choice of closing company and set up an escrow account administering and transfer the so called "Cash Sale" amount.
I was told it takes 7-12 business days to receiving the agreements signed by the Seller.
Almost a months later I had never received the signed agreement bearing the Seller's signature.
Instead an email notification stated that I have had requested the cancellation of the Pending contract agreement and therefore agreement is nulled now.

Currently working with a law firm to filing a temporary junction and file a complaint to extend and form a class auction complaint in Texas to stop Auction.com and its parent company named Ten-X LLC conduct business. It seems no one knows what had happened to $10,825.00 earnest money i had wire transferred following the Auction.com instruction to designated bank account outlined elsewhere in Auction.com documents,

I want to share my experience as I am currently trying to do a closing. So far I am out 14K (5%) signed the contract on 3/28/14, every time I called to check the status they told me to wait the 15 business days in the contract, that I did my part everything was good. Today 4/12 they send an email asking to re-sign as the electronic signature I made with the software they provide, my initials overlapped the text of addendum. That something I had no control of... I asked them to confirm by email that the 15 business days to return the money incase of no response from the seller stays the same as with everything I read here is highly suspicious. I have to add that the contract you sign is removing all your rights on anything in case something goes wrong (ie. The house burn before the closing, the title of the property has an issue, the property is trashed...) If I had knew before I probably would not have moved forward as the risk - reward is not that good. It's like everything as you move toward something is hard to stop but that's not something I would go trough again. There is other way to get properties from a real sale. As everybody said you are bidding against bots and that was my feeling as well during the process. On top of that it is NOT an auction but the right to submit an offer to the owner of the property and he can refuses or accept. I hope I will not have to hire an attorney to get my money back once the deadline expire. Will keep in touch to let you know what happen. One thing certain, I will invest a lot of time and money in reviews on internet in case I loose my deposit to be sure people can Google it.

This is not a scam (some homes do get closed) but there are many things that they do that I believe are illegal and in my opinion they need to be sued and humbled. Here are a few of the lawsuits that I think people should look at filing against Auction.com, the seller (bank) and the title companies:

1. Section 8 of RESPA violations - The title company cannot charge for unearned fees. According to an Auction.com employee who I communicated with, the title company that they require you to use charge higher fees as they are recovering the cost for all the pre-foreclosure title work and title report done for the sale. I believe it is illegal to pass this on to the buyer but that is what they do. Purportedly this is spelled out in the agreement between the title company and Auction.com. A good attorney should be able to get this agreement during discovery and find out if Auction.com pays anything for the pre-sale title work.

2. Section 9 of RESPA violations - Under RESPA they can not require you to use a specific title company as a condition of sale but that is exactly what they do.

If you win the suit you get triple the cost of everything paid to the title company (all those high fees x 3) plus attorney fees and court cost.

Finally, everyone who feels that they have a legitimate complaint should file a complaint with HUD, the attorney general and the local real estate licensing board in their state that licenses Auction.com. Google RESPA and filing complaints.

The above is my opinion and my opinion only. I recommend anyone who reads this speak with an attorney of your choosing to ascertain the facts and merits of any case.

They list properties over and over and over because the reserve prices are ridiculously high (Not really the auction sites fault). Their shill bidding process of Auction.com bidding on behalf of the seller means the highest bidder under reserve will always be Auction.com, so you'll most likely never win an auction under the reserve price. The large majority of reserve prices are so close to market value that all of the risks of buying foreclosed properties (Everything that can go wrong with a title/deed, tax liabilities, liens, fines and fees, nightmare occupant scenarios, condition of building being far worse than stated, etc) far outweigh any bargain possibilities. Once you buy an auction bought property you are left holding ALLL the risks. Without the financial bargain of being able to get a great "Auction Price" price, there is no point of an auction.

You may be able to successfully buy a property on Auction.com, but don't expect what everyone thinks of when they think of getting an auction deal... You're going to pay closer to market rate than should be expected of REO and distressed property sales AND you are going to be handed all the risks that come with such properties.

Auction.com isn't really like an auction. It's more like a realestate agent submitting best offers on a property to the seller who doesn't actually have to accept any of the best offers whatsoever... all the while buyers are left with all of the VERY LARGE risks and realities of buying auction properties.

Also, they tie up your $2500 for far too long in my opinion. It can take a full week or longer for the release of your $2500 credit card hold.

Delays that have gone weeks beyond the 30 days stated in contract. Buyer is bound to contract, Seller is apparently not. Winterization companies destroying front doors and door frames to gain access. Notices posted on front doors after closing stating that they will secure the property again. Winterization company that went in the day before closing and stripped everything out that wasn't bolted down. Not getting access to many of the vacant homes so you can get an idea what you are bidding on. Being charged crazy amounts in closing costs such as $600 for a smoke detector installation and inspection. Total charged was $900 so I guess I am lucky to pay only $600? Lawyer for seller thought charges were justified. It was an "as is" property. Inspection was not even needed. I could have done it for $50 fire department inspection fee and $40 for detectors. Problems with getting clear titles so a closing can occur. Make sure all utilities are paid in full before you close so you don't get stuck paying them. I see a not for viewing listing for a tri-level that notes that pipes may be broken and water was coming out of lower level windows. What kind of mess is that going to be? $1000 or $20,000? I have bought 5 homes through auction.com and so far haven't been burned on a deal, but I do all the needed work myself. Much of the work is cosmetic with a few surprises along the way. Know your market and estimate high on what you think a house will need done and bid accordingly. Utilities, real estate taxes and insurance can eat into your profits if you plan to flip. And don't forget your real estate agent will want 6% commission to sell. If a property gets too high for you at auction.com, stop bidding. I see some properties that have been listed for many months. I don't know why they won't just publish a reserve on them and sell them.

Update 2/20/2014. To be fair, I recently heard of someone in our area who supposedly did get a good deal on this site, but I don't know the details. So I guess it is possible. But I will re-iterate this point. The bids start artificially low and in every case I've seen you have to bid it up quite a ways to get it. And it depends ultimately if you intend to live it in or not. As an example. I bid on a house that started at 45,000 twice. The estimated value of the home after 20,000 of fix up was 145,000. This was verified by my very experienced Realtor who has sold homes in this area. I gave up bidding on it after two online auctions. I looked recently in the public records to see it ultimately sold for 120,000. I'm not exactly sure what the people where thinking who bought it, but it sure didnt' seem like a very good deal to me. After paying cash and fixing it up, it will be worth pretty much what they have into it. I wouldn't usually pay full price for a house I can't even go inside to check its condition. You might as well buy one off the regular market in that case.

Original review:

Don't be lured in by their opening bids thinking you will get a great deal, the opening bids they post are false bids to get people excited to bid on their properties. They are not even close to the minimum bids the bank will accept so you waste your time thinking you will get a good deal. Believe me I've bid on several of them.

In fact, in my area there currently at least 4 houses that have been put up for bid over and over and over (maybe at least 6 times) on their web site over two months. The opening bid is ridiculously low ($*******) but even after the price is bid up to $1******* plus, it never sells. Even if they say it does, it shows up again on the web site next week again.

These houses like most of them are in poor shape and need 10's of thousands of repair but they keep holding out for full price as if they are fixed up! It's a waste of time.

Waste of time with a crappy company (unless of course you want to get ripped off!)

I made an offer to the bank who owned a foreclosure when it was still on the MLS. I am very familiar with this home, the past owners, and the condition of the property. The property consists of 1.15 acres and all but 8 ft of the property are in the front of the house. Yes, the property line extends 8 ft from the back of the house. Basically - NO back yard. Not a problem for me as I want to rent it out. The county property records indicate that the house has two buildings. That is not accurate as the owner removed the metal building leaving a large foundation big enough for a basketball court. The property records will not reflect the change until next year. Additionally, some states, like Alabama, have a right of redemption. In Alabama it's one year. The owners of this house have until May of 2016 to "reclaim it" if they have the money. My last counter offer was not accepted by the bank (cash, no inspection, quick closing). Now this home is on Auction.com. The home as listed on auction.com says it has 23.4 acres, and the pictures of the surroundings in the back yard are actually not in the back yard. It's the neighbors acreage. I have sent their supposed "customer service" information about their "errors" of this listing but obviously, nothing has been done. So - this listing is pretty much full of deception. I happen to have done my due diligence and also contacted the county regarding the property lines and the fact that there were NOT two buildings on the property. The records have not yet been updated indicating only one building (the house). My point:
Better check out the property IN PERSON and please check out the information that auction.com has on the listing. Additionally - you better check out the "redemption" period for your state. Of course, no mention of THAT on their listing either. Most people do not want to deal with the uncertainties of the redemption period. So some schlep will be bidding on a property that looks good in the pics, property records say it has two buildings, and just look at that back yard - it has 23.4 acres! Oh - and the house does not have clear title because the owner can reclaim it until May 2016!