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R James
January 17, 2011
continues to extend closing of escrow
I bid on and was the high bidder for a property, contracts were signed by both parties, earnest money paid and a closing date set. A couple days prior to closing, I was emailed that title had not been cleared and an extension for 30 days was signed by the seller (I have not signed the extension). After researching I found that there was a land dispute where as the home I would be purchasing is actually built 4 ' on the adjoining property . I was told by the neighbor they are waiting on the home being sold to have the law suit brought forward since it is hard to file suit against an intidy of the fed government. REDC's closing rep tells me I have to wait however long it takes to clear title .I looked at the contract and as I read, it sounds to me like both buyer and seller have to agree to extend. Since they have had 2months to clear title I believe that is plenty of time. I am asking for the earnest money to be returned, and when they have a clear title re-issue to me the contract. I don't think it is right to hold my $8000 and some one else collect interest while I just sit here. I am being told I will lose the earnest money if I do not complete the purchase. If they cannot provide a clear title (no matter how long it takes) is the only way I will get earnest money back. I will say the other properties I have bought from REDC were closed on time and with no problems and I am completely satisfied with those
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Citizen Activist
December 15, 2010
Unethical/Unlawful practices
I was high bid on an auction.com property. REDC emailed me a bid confirmation form and a rep phoned me immediately after (online) auction end to confirm the info. I questioned why they were call since the auction page reported "reserve not met". They said that I had met the seller's minimum requirements, and that they had to submit the offer and collect my (5% / $3, 500+) earnest money immediately. The bid confirmation form had inaccurate amount for deposit, so I replied to the sending address and cc:d the other email address noted for correspondence asking for a correct document to sign. I did this within 1 hour of the auction and speaking on phone with rep. Received the email program "read receipt". The next day, still had not received corrected form, so I emailed again expressly asking for receipt confirmation too. Again received the electronic email program "read receipt" but no response from REDC.
A few days later I was shocked to see the property, for which I was the high and eligible (according to REDC) bidder, relisted for auction. No notification was ever given to me about this.
REDC claimed that they cancelled my transaction because they could not reach me for confirmation. They freakin' spoke with me on the phone minutes after the auction concluded, AND opened 2 emails from me!
So, I again bid on that property, and again was high bidder (but this time at higher bid). REDC again insisted that even though the reserve was not met, they had to complete the transaction. They claim that seller often accepts anyway, and that overall they have an 80% auction success rate. (I have yet to see one of the many properties I have bid sell to high bidder.) Even before they had sent me a contract to read and sign, REDC reps phoned twice to ask if I had sent my deposit. They are very anxious to get your money.
I read and signed contract, and within hours wired the deposit money to closing company/bank. Emailed the appropriate REDC email address to verify that the supplemental documents that were requested had been received. Big surprise...email program "read receipt" but no confirmation from REDC. The seller has 15 days to accept or reject the offer. Seven days later, guess what I see on the site? The property relisted for auction! Relisted WHILE my offer was pending. Relisted with no notice to me, no return of my deposit. I have asked for confirmation that they even submitted the offer; they refuse to provide that.
(This Fannie Mae property has failed to sell at auction, due to seller rejection of offer or REDC's failure to submit offer, at least 5 times that I know of.)
I believe the actions of REDC to be fraudulent. At best, they are unethical. They cannot be trusted.
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