REDC UK Repossesion auction. SCAM??

andyb2009

Hi, Has anyone got any thoughts or information on the American auction company called REDC ?

I have put in some offers on a local repossesed house (been advertised by local estate agent) only to be told that it is now going to auction regardless of any offer.

My offers have been close to the listed 'for sale' price, and in my opinion the last one at a premium to try and secure without going to auction.

Having researched REDC online. They are one of the biggest sellers of foreclosed(repossesed houses in America) It will be their first auction first in the uk, their selling style is typically American... big bold and brash, possibly with a bit of underhandness aswell.

The hammer goes down and unlike a standard UK auction the bank/seller has 15 days decide wether to accept your offer(so what exactly was the point of going to auction???). If they decline they can ask you to counter offer and increase your bid ! !

This is the biggest sticking point, it totally goes against any advantages of buying at auction in the first place. If someone comes up with a better offer than your winning bid within 15 days the bank/seller may reject your offer or ask you to counter offer.......

This is verging on a scam...It is in their terms and conditions, but it doesn't make it right.

I really want the property but after all my research don't think I'm going to try and buy at the auction.

They are starting a big advertising campaign in next few weeks, the viewings are ridiculously close to the actual auction dates.

Wanted as many people as possible to know about this as possible. ANY THOUGHTS ?????

The auctions are to be on 31st March and 1,2,4/5th April 2009 in Newcastle,Leeds,Birmingham,Manchester and London. I believe these will be the first REDC Auctions held in UK. They are big in America, very controversial. Check out American forums

All feedback welcome:beer:

Richard_Webster

the viewings are ridiculously close to the actual auction dates.

So nobody has any time to get a solicitor to look at the auction legal pack!

Presumably if the proeprty is "knocked down" to you and they accept it within the 15 days you have complete even if in that time you have discovered something nasty in the legal pack.

andyb2009

Thanks Richard,

Yes I think that's correct they have it both ways.

The ability to turn down your offer, but, if they accept you are duty bound to buy and lose your deposit if you pull out !

It seems to do away with all the advantages of buying at auction and just increases the disadvantages.

Let's try and stop them before they get a foothold in the UK auction market ! They are very big in the US and it's heading our way and not for the better.

m_13

The RICS has a standard auction terms document which most reputable auction houses use. It's clear that when the hammer falls you exchange on the property and that's that.

Going to auction regardless of any offer is quite common as it means the transaction is more transparent and there is less likely to be comeback on selling the property under value. However, this auction doesn't sound like an auction!

Do you have a link to their auction site for the UK? I'd be very surprised if their terms and conditions in the USA were allowed here.

andyb2009

the link is www.auctiontoday.co.uk

however it is still under construction. should be up and running in a few days.

Because they are new to uk, I have emailed the person in US to find out more but he was very unhelpful and said to wait for website to come online !

m_13

Interesting information on that domain name:

Domain name:
auctiontoday.co.uk

Registrant:
Auctiontoday

Registrant type:
Non-UK Corporation

Registrant's address:
1 Mauchly
Irvine
California
US

Registrar:
GX Networks Ltd t/a 123-Reg.co.uk [Tag = 123-REG]
URL: http://www.123-reg.co.uk

Relevant dates:
Registered on: 04-Oct-2007
Renewal date: 04-Oct-2009
Last updated: 03-Feb-2009

Registration status:
Registered until renewal date.

Name servers:
ns1.ushomeauction.com
ns2.ushomeauction.com

WHOIS lookup made at 11:48:55 24-Feb-2009

Registered in October 2007 and last updated on 3rd February 2009. I wonder if they bought it from a speculative buyer?

If they are doing their first auction at the end of March 2009 then I would have expected the site to be up and running already :rolleyes:

andyb2009

the property I was looking at had been up with an estate agent for over 10 months, so comeback for selling under value not likely to be an issue.

Especially as my last offer was £40,000 above the next best offer in the last 4 months ! !

They must be crazy to turn it down. I must be crazy for offering it.haha

It's a good solid house, but needs total refurb top to bottom.

I think I'm just gonna have to walk away now ? ?

andyb2009

It should have been up and running on 21st Feb 2009

I have been told they are trying to get it online ASAP !

andyb2009

for your interest their american website is ..........

www.ushomeauction.com

m_13

andyb2009 wrote: »

the property I was looking at had been up with an estate agent for over 10 months, so comeback for selling under value not likely to be an issue.

Especially as my last offer was £40,000 above the next best offer in the last 4 months ! !

They must be crazy to turn it down. I must be crazy for offering it.haha

It's a good solid house, but needs total refurb top to bottom.

I think I'm just gonna have to walk away now ? ?

Are you certain your offers are being passed on to the client? They may well have passed a block to the auction not knowing about your offer.

Do you know who the mortgagee in possession is? If not, downloading a copy of the title from the land registry for about £3 should tell you. I'd contact them direct and make clear what your offer was. I've seen a post on here about somebody who found the EA wasn't passing on their offers for a repossession property.

PasturesNew

They bought that uk domain through sedo on 2 Feb for £1400.