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I put in an offer on a Hubzu property on Clearview Way in Eagle Point, Oregon.  After winning the auction, I visited the property and did a more careful examination only to discover that the garage had a fire in it and that is why the garage was boarded up as well as the front door.  Also, the garage door from the inside of the house had a bar across it and lock so I could not see into the garage.  So, obviously, *someone* did not want prospective buyers to actually see the damage prior to bidding on the property.

I approached Hubzu (Altisource processor) about this and I was told there was no fire on the property.  I can show you the emails.  I was told straight up that there had not been a fire.  After I responded back that there is evidence of charring and a neighbor had told me there had been a fire, then I was told "there is no active fire there."  Haha  Really?  I said more or less Doh, of course there isn't now, but there was and why was there no disclosure?  I was then told, 'minor damage." and it took me pressing the issue several more times regarding the fact that not disclosing fire damage before they coughed up the fire report.  

This behavior is not only unfair to bidders and poor business practices, it actually violates real estate laws that require disclosure of the fire.

Hubzu's response was to redo the auction and again, not disclose the fire.  They claim it is disclosed on the MLS, but in carefully reviewing the listing, both auction and MLS listing, there is no fire report.

Their response when I contacted their customer care was for them to call me and tell me how I was wrong  that they did not have to disclose the damage and that they have a big legal team that does everything by the book.  Yeah, right.  

So, Hubzu ended up selling the property and I am out the deal.  An in fact, they sold the property for less than what I offered.  They said they would sell to me for no less than $75k, but they sold it recently for $64k.

I know they are not obliged to sell to me if they don't want to, but the fact that they were willing to sell to someone else for $11k less rather than disclosing the fire damage, tells me that they were worried it may have gone for less if the fire was disclosed.  

So, Hubzu gets away with lying to me, secreting the fire and I lose the purchase.

I know someone else who bid on a property from Hubzu and they listed the property as having air conditioning and heating, when the property clearly does not - wires clipped on the heaters and air conditioners have been removed.  In telling Hubzu about this, they said basically too bad, you want it or not.  This person also told Hubzu that transients have access and the place is not secured so that there is fresh feces and further damage to the property could occur.  Also there is black mold that should be disclosed.  Their response again was basically take it or leave it.  

Hubzu states the property this person was wanting has financing considered, but without a heat or air source, wide open access to transient damage and black mold, how will this place finance?  I am sure what they will do is take this person's monies put as Earnest monies and then not give it back to them, as they say they accept a financed deal but that they don't accept financing as a contingency.  That should be considered fraud in my opinion, because if you know a property won't finance but you accept it and also state it is no grounds for contingency at the same time, that should be illegal.

Am i shocked?  No, not after their customer care person boasted about their legal team and how almighty it was.  They just more or less are saying "we are so big and wealthy - try to stand up to us!"  They are brandishing their power and wealth over the top of the consumers they derive their wealth from.  

There's got to be something that can be done, beyond whining on blogs and trying to rally government agencies that could care less.