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REDC at www.auction.com, New York Complaints & Reviews - Unfair charges

REDC at www.auction.com Contacts & Informations

REDC at www.auction.com

Posted:    GraceP

Unfair charges

Complaint Rating:  95 % with 62 votes
Contact information:
REDC at www.auction.com
New York
United States
Unfair charges;
I won the property at auction and was ready to close very next day. REDC set the date for July 7th. I called closing company and asked for the closing before July 4th, and was told it will be OK, but REDC did not provide closing company with a contract until cling day, July 7th and we could not close on required date.
Because closing company not having a contract could not set the date for closing, I decide to take a week vacation starting July 4th weekend. On July 7th closing company emailed me that they still don’t have the contract and we can’t close, but the seller is charging me a penalty, $150 per day until closing. I called REDC three times, and each time I was told they will get back to me, but they never did. They also don’t reply to my emails.
I refuse to pay unfair charges, and will not buy property if the charges are not removed and closing done before July 14.
It is unlikely that REDC will refund my deposit of $2500, but it will be to costly to take them to the court. They will screw me up either way.
Grace.
Comments United States Real Estate
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 17th of Jul, 2010 by   Nknieff +1 Votes
We are looking at a house in jax, fl for the first time with this AUCTIONS.COM. Saw the house today and the agent was less than helpful, like she didn't even want to be there. The only information she gave us was that the low bid of 29K online was not correct and the seller 'Fannie May" would be looking for much more (like 120K), and they can decline any bid that wins if it isn't enough? Not sure this is a good way to go. It is for my elderly mother (wheelchair bound), spending much of what she has left, and we were thought this may be a good way to go. I still have major doubts? She is thinking of putting in a pre bid online? I wish I knew more to advise her, I am looking! Any info is appreciated!
 11th of Nov, 2010 by   goodman123 +1 Votes
that's terrible.
 11th of Nov, 2010 by   goodman123 +1 Votes
one confusing thing is when the bid Reserve not met. they can change it anytime still give to you.
So, be very very careful do not try to raise the bid when you think the bid under Reserve will be rejected.
 24th of Dec, 2010 by   Frank Willow -1 Votes
REDC are also a bunch of cheap bastards! They live the high life on the beach in Newport while their employees struggle to make ends meet. You know these ass holes didnt even give their employees a Christmas bonus!
 10th of Jan, 2011 by   Auction_expert +1 Votes
I have been watching auction.com on-line auctions for more than a year. I have NEVER seen a bid meet the "Reserve" price. You can draw your own conclusions...
 23rd of Feb, 2011 by   auction.comSUCKS +1 Votes
Auction.com is a full blown scam, stay awy at all costs. everything you read is true. You are required to pay $2500 at REDC and 1500 at auction.com. which they will keep for 30days after auction before finally releasing your money.
Yes the stories are true people win auctions only to have the property they rightly won put back on the market with the excuse of the seller refused the winning bid. Someone need to tell these idiots this is not an auction it is a scam and huge joke.
At a real auction the winning bidder wins.
Bottom line if they don't like the winning bid amount they can walk away with no loss.
But if you decide to walk away after supposedly winning an auction they keep your money as penalties and seller damages.
Really sad: If you google auction.com scam, the company actually had an employee (posing as a simple auction atendee) make an 8 min. video saying how great the site is and what a wonderful experience and how helpful all the employees were.(What a joke)
If you notice the video is hosted on auction.com website.
 18th of Mar, 2011 by   CSHO 333 +1 Votes
I agrees this is a scam they also charge fees and want payment via wire $25, 00 fee and so on... the property I bid on was selling on the market for $69, 000 before the auction and the winning bid was $48, 500, but seller did not except bid?????how much did they expect. now they are holding my money.Auction.com is a full blown scam, stay awy at all costs. everything you read is true. You are required to pay $2500 at REDC and 1500 at auction.com. which they will keep for 30days after auction before finally releasing your money.
Yes the stories are true people win auctions only to have the property they rightly won put back on the market with the excuse of the seller refused the winning bid. Someone need to tell these idiots this is not an auction it is a scam and huge joke.
At a real auction the winning bidder wins.
Bottom line if they don't like the winning bid amount they can walk away with no loss.
But if you decide to walk away after supposedly winning an auction they keep your money as penalties and seller damages.
 29th of Mar, 2011 by   nothappycamper2 -1 Votes
My wife and I are winning bidders.

The listing agent, Auction.com, their referred lender, their closing company, NREIS, have all been incompetent, unprofessional bumblers from day one. The only way they know to be "helpful" is to threaten penalties if it doesn't get closed.

If our purchase actually closes, it will only be because of what I (the Buyer) have done. The listing agent has done zero, not even the minimum required by state law.
 8th of Apr, 2011 by   Samueladams +1 Votes
They tried to get money from me before the auction even began. They wanted me to allow them to use my credit card to "hold" 1000 to prove I am a serious bidder. Before I registered and bid online and it accepted it, but out of the blue it had me do a 3rd register procedure. The guy even personally called me and told me that it was because the selling mortgage company insisted on this. Lets see, you give me 1000 earnest money and Ill "hold' it while Im considering your offer, and then when I decline your offer, because it didnt meet my reserve (that I didnt tell you about) I get to hold your 1000 until I deceide to give it back, more like if I deceide to give it back - Scam
Eventually, these mortgage companies are gonna have to stop playing these games and get serious if they want to get rid of all of the reos that they have and the incredible amount they are about to get
 20th of Apr, 2011 by   pandoraxyz +1 Votes
Not only do they scam the successful bidder, they find loopholes to keep from paying the agent who works with the buyer and moves them forward to a successful purchase.
 9th of May, 2011 by   CommonSense56 0 Votes
Auction.com is far from a scam, and happens to be a great platform and company. Anyone with any housing auction experience knows that EVERY real estate auction has reserve prices. That is just the way it works. Whether you go to a live auction or bid online, they all have reserves. Also in regards to all the comments about the deposits they make you put down before bidding on a property, well DUH! Of course they make you put down a deposit, if they didn't then everyone would bid, and there would be no way to tell if the winner is a real prospective buyer. It is insurance against some 18 year old college kid trying to steal a property and waste their time. If the unqualified bidder wins, it would cost Auction.com thousands of dollars in wasted marketing and time. When you are auctioning off 100, 000 to 50, 000, 000 dollar assets, a deposit only makes sense. I know lots of people with great success stories because of auction.com. I also know people who work there, and it is far from a scam. Maybe everyone above needs to do more research on what they are getting themselves into before they complain about nothing.
 26th of May, 2011 by   KaiserS 0 Votes
CommonSense56 is a shill from the site. No doubt one of the "Bidders" used to inflate prices. Post your real name and address and see who comes to pay you a visit.
 11th of Jun, 2011 by   CaveatEmptorAZ 0 Votes
Lets get a few things straight. Auctioneers work for their clients, who in Real estate tend to be a) banks b) asset management companies c) fannie/freddy government owned entities, and d) bankruptcy trustees.

They do not care about the buyer. That is not their job. Their job is to make the seller happy. So it definitely is "buyer beware." Their job is to create hype and the "perception" you will get a great deal. Its not to deliver a great deal. Their job is always in the end, to make the seller happy. Not you the buyer.

In some states shill bidding is legal ( like in Arizona) so "fake" buyers can be in the crowd. Be very, very careful. Are all auctioneers crooked? Nope. But they aren't all honest either. Don't get caught up in the emotion. Know your hold price and don't go above it. Not ALL auctioned items have a reserve bid, but most do.

The law is about disclosure. Auctioneers should disclose as much as possible to avoid problems down the road, but not all will.

Caveat emptor ...always...
 22nd of Jun, 2011 by   Fawn Luciano 0 Votes
Well, i was considering using auction.com until i googled whether it was legitimate here.
Overall concensus it seems to be very very negative of this company. If i had read something positive here
(other than what i see as an employee posting his positive affirmations) i may have gone with this company and started
bidding. But with all this bad rap, forget it.
And if the employees at auction.com truly ARE scamming people and making them miserable while unfairly holding their money, word to you...what goes around, comes around. Karma, baby. You'll get payback in the end, for how you treat people, it will come back and bite you real bad some day
 7th of Jul, 2011 by   Let's be positive for a change 0 Votes
So if someone post a positive remark then they are automatically an employee? That seems to be the consensus here. Stupid conclusion to draw. Maybe I should draw conclusion that the negative comments are from competitors? Equally as asinine. I've worked in and around real estate for years. Auction.com is a legitmate company. The largest real estate auction company in the US actually. It's main competitor is Hudson and Marshall and I assure you they are just as legitimate and you will run into the same rules that govern Auction.com. Real Estate is highly regulated and there are a lot of governmental procedures they have to follow. Also, banks are the majority of their clients. Big banks such as Bank of America and Fannie Mae not the little ones. They also regulate a lot of the rules. People complaining about deposits(EMD) obviously have never tried to buy real estate. Reserve prices are there on all of the properties as mandated by the banks. It's clear in the contract and disclosed prior to bidding. Auction.com doesn't keep deposits(EMD) from the buyers. They don't see a dime of that. Earnest Money when retained goes to the seller(bank). I've worked on all sides of the real estate from being an agent to working for an REO company to being an investment buyer myself. Yes auction contracts favor the seller greatly. as do REO contracts. The reason for this? Banks make it that way because they know people will still buy that house because they price them cheap. The deals are real. If you don't hit the reserve they give you the option of increasing your bid or getting your money back. They don't keep anyones money that follows the letter of the contract they sign. Just keep in mind when researching scams. There are way more people out their willing to post negatively then willing to post positively.
 16th of Jul, 2011 by   t0mmy108 0 Votes
It would be great for buyers if there was less traffic on the site. Less competition for serious bidders and hopefully better prices. I understand this isn't what the site or sellers want but I'm personally irritated with people who are unfamiliar with auctions making early bids and raising the prices way too early in the auction. If you seriously want the property, bid properly. If your'e just screwing around and testing the waters, then just sit back and watch, don't bid. You don't win auctions unless you're there during the last 3 seconds with your maximum bid. You're just getting emotional and may waste time and money bidding early.
 17th of Aug, 2011 by   hatailor 0 Votes
The biggest issue with this type of company is transparency. The employees may be bidding against you, and you have no way of knowing. Maybe the site is legitimate and maybe not, but there is a real fear of bidding against non-existing bidders. And then the reserve is not met, and the bidder has wasted his/her time.
In ebay, the rules allow people to put their highest bid and then the amount increases in an orderly manner up to their highest bid. So this risk is lessened. Also, there are identities that one sees. None of this happens in these circumstances.
 23rd of Sep, 2011 by   Bradhealy321 0 Votes
Auction.com is the biggest scam. Please read the terms and conditions very very carefully. What you might not know is that any auction.com representative at any time can bid up to the reserve price during the auction. You are not bidding against other investors but the bank itself. Biggest scam in the world! They are simply trying to goad your purchase price up! Then if you are to win they expect 10% of the purchase price within 24 hours. There are no deals to be had on this website. You are also not paying market value for these properties - you are paying what the bank wants you to pay.
 23rd of Sep, 2011 by   Davidhanna 0 Votes
In reponse to a couple of people who are in favor of auction.com above. This is not a normal auction. Yes, I agree all auctions have a reserve price. However, in car auctions, ebay, antique auctions, etc. a reserve price may be listed and if it sells great and if it doesn't than the seller gets their item back. The real misleading difference with Auction.com is that you are not bidding against other competent bidders - who also have money on the line! Instead you are bidding against the bank, who can bid at anytime, and has nothing to lose except get the property back. Its like going to a car auction and having a phone bidder - bidding against you in the auction. The only problem is the phone bidder is actually the seller. Make sense right! Think about it?
 24th of Sep, 2011 by   GarLaa 0 Votes
I Been in the Real Estate business 33 years, my experience with Auction.com was the worst ever!!
I wonder how they stay in business??
My guess is, they wont be in business in a couple years, buyer beware, no deals here, just B S !!

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