Is Hubzu a Real Company?
The first thing real estate investors ask when they hear about Hubzu is whether it is a legitimate company or a scam. Hubzu is the online real estate platform and auction site that is affiliated with Altisource Portfolio Solutions and Ocwen Financial the mortgage servicer. Hubzu is a legitimate online real estate marketplace. However, there are some things to consider before you place bids on an online real estate auction.
What is Hubzu?
According to a press release, Hubzu is self-described as “one of the nation’s largest online residential real estate auction marketing platforms providing buyers, sellers and realtors with innovative technology and strong customer support.” Hubzu began in 2009, a time when foreclosures were at record highs, as an outlet for bank-owned (REO) properties to be sold online. Short sales were later added to their inventory. Currently, the large majority of the real estate inventory on Hubzu’s website is bank-owned property. Investors can browse REO properties and participate in the online auction.
How Do You Bid On Hubzu?
First you will need to register to bid online. When you search for a bank-owned property you will see an orange place bid button on the right side of the screen.
When you click the “place bid” button, you will be taken to a page to update your contact information.As you follow the steps, you will be asked to place a $1,000 bid deposit hold on your credit card.
This will be applied to your earnest money deposit. If you are the winning bidder at an auction and fail to deliver the full earnest money deposit (EMD) to escrow then you may lose your bid deposit as a penalty.
How Much is The Earnest Money Deposit (EMD)?
The earnest money is the less of 3% of the winning bid or $15,000.
Is Hubzu Cash Only?
As a company, Hubzu will take cash or mortgage financing. The more important factor is the condition of the property. Most banks won’t lend on properties that aren’t habitable. Since many bank-owned properties are trashed or severely dilapidated, they often don’t qualify for a mortgage. That’s not the case for all bank-owned properties, many do qualify for financing. If a property’s condition makes it ineligible for conventional financing, then you will have to pay cash for find a hard money lender. If you have questions about a particular property’s eligibility, any property, call or email us 888-870-1031 or email@example.com.
There are mixed reviews about Hubzu. A quick search can find hundreds of reviews that are mostly negative. Of course, negative experiences are a stronger motivator to write a review than good experiences. This is a legitimate company in the messy business of selling distressed real property. There are many risk factors like hostile occupants, title issues, unforeseen damage, and sloppy bid management. However, their business is to sell real estate, so if they couldn’t successfully move properties then they would be out of business.
You can read reviews at:
Is Hubzu a Scam?
A scam is defined as a dishonest scheme or a fraud. Many reviews call Hubzu a scam which is inaccurate. This company is genuinely selling real estate. Sometimes buyers might buy a bad property or lose their bid deposit and “feel” scammed. However, feeling scammed or ripped off is different than being a victim of a fraudulent company that is truly scamming people.
Where is Is Hubzu located?
40, avenue Monterey Luxembourg L-2163, with service centers in the United States.
What is Hubzu’s phone number?
(855) 882-1314. A subsidiary of Altisource (770) 612-7007