BBB has issued an F rating to Auction Agency, an Austin-based company which lists foreclosed homes and automobiles for sale on the Internet. Consumer complaints received by BBB allege Auction Agency represented their service as a free trial, then later assessed charges for unrequested services. Additionally, several disputes allege dissatisfaction with the company’s services.

In May 2010, BBB contacted Auction Agency to request responses to multiple unanswered consumer complaints and to address the underlying causes of these disputes. Despite assurances that responses would be forthcoming, BBB has received no correspondence from the company as of July 21, 2010.

Christian Hunter, owner of Auction Agency, runs several other companies including HomeCentrix LLC which provides foreclosure services and information via foreclosureagency.com, myforeclosurefinance.com, nationalreponetwork.com and publicloanconnect.com. Consumers frequently name these services in complaints to BBB as memberships they allegedly did not sign up for. For more details, visit Auction Agency’s BBB Business Review here.

Additionally, Hunter is CEO of the holding company Second Meta LLC and debt settlement company State Pay, co-Manager of Attention Ventures LLC and owner of My Town Media LLC. My Town Media attracted recent media attention for suddenly ceasing operations and failing to pay employee wages.

Clarify Details for Free Trial Offers:

• Verify when the free trial starts and ends.
• Read terms and conditions carefully for any hidden information that may not be communicated directly.
• Find out if accepting a product at the end of the free trial automatically transfers to a renewing plan.

To check the reliability of a company and find trustworthy businesses, visit BBB.

Savvy home buyers may find bargains among foreclosed homes the distressed economy has put on the market. However, Better Business Bureau of Southern Arizona urges buyers to educate themselves about the potential pitfalls of buying foreclosed properties.

“Bargain-hunters see foreclosures as a chance to buy prime properties for below-market prices,” said Kim States, BBB President. “While the purchase price may be lower, buyers need to be prepared for the unexpected, especially if they buy the properties at an auction.”

In 2009, Arizona had the second highest foreclosure rate in the country, as lenders foreclosed on 163,210 properties, up almost 40 percent from 2008, according to RealtyTrac, a California company that tracks foreclosures and markets property.

Properties sold through a foreclosure auction may not be available for inspection before the purchase is made, leaving bidders in the dark about their condition. In some cases, potential bidders may be able to obtain a property’s address, so they view the exterior in advance of the auction.

Some buyers have purchased homes only to find they had been stripped of plumbing pipes, light fixtures or had otherwise been trashed by previous owners before the sale.

Buyers may have better luck buying houses put on the market by the homeowner who was facing foreclosure before the lender completed the process. In some cases, buyers may have a better chance to inspect the property for potential defects. If the buyer owes more than the property is worth, however, the deal could be in jeopardy.

The BBB offers the following tips:

• Know your options. Pre-foreclosure sales allow you to purchase a house directly from the homeowner before it goes into bank foreclosure. Lenders may also sell properties they have taken over using an agent who specializes in such properties. At auctions, you bid against other buyers at the courthouse or other locations.

• Conduct a title search. This process, usually conducted at a county courthouse, will show whether the property has a second mortgage or lien against it. If it does, you may be responsible for paying off the initial mortgage, any second mortgage loans and any liens on the property before you can take ownership.

• Properties sold at auctions are usually sold “as is.” This can create problems when trying to obtain a mortgage if the property won’t pass inspection.

•    Obtain help if you need it. Find a real estate agent who is experienced in foreclosures and check him or her out with at www.tucson.bbb.org. The BBB offers free Reliability Reports on more than 3 million businesses.

• Have your agent check nearby or comparable homes to see if the asking price for a foreclosed home is, in fact, a bargain.

• Consider the costs of cleanup or repairs if the home isn’t in good condition.

For more information on buying a home or to check out a charity or business, contact the BBB at www.tucson.bbb.org or call (520)888-5353.

Online auctions can be a great place for finding deals at any time of year, but over the holidays such sites become hot spots for tracking down popular and hard-to-get gifts – such as new game consoles or must-have toys. The Better Business Bureau offers advice to shoppers on how to avoid getting ripped off when searching for bargains and hard-to-find presents through online auctions.

According to Jupiter Research, $38 billion will be spent on items auctioned through eBay alone in 2009. For most buyers and sellers, the transaction is successful; however, online auctions can be fertile ground for scammers. In 2008 half of all complaints to the FBI related to online fraud were the result of online auction fraud and non-delivery of merchandise.

“Online auctions can sometimes be the only place to find that must-have gift of the season,” said Ken Vander Meeden, BBB of Western Michigan President. “Whenever demand for a specific item over the holidays reaches a fever pitch, it provides a great opportunity for scammers.”

When bidding online for holiday gifts, the BBB recommends that shoppers:

Find out how the auction site protects buyers and sellers from fraud. A responsible online auction site will take steps to protect both buyers and sellers from fraud. Find out what actions the auction site will take in your defense if you become a victim of an unscrupulous seller.

Compare the cost of the item elsewhere. Scammers will often price their items lower than the competition in order to lure in buyers. A lowball minimum bid for an item should be considered a red flag.

Research the seller. Online auction sites often provide the opportunity for buyers to rate sellers and provide feedback on the transaction. These reviews are a great way to determine the seller’s track record, but keep in mind that reviews are typically not authenticated and some sellers will pay for flattering reviews in order to mislead buyers.

Ask plenty of questions. When in doubt, don’t be afraid to ask the seller questions about the item, including how they came to own it, its condition and if you can return it if you’re not satisfied. Also find out whether the cost of shipping is included in the bidding price and, if not, clarify what the added delivery cost will be.

Don’t be lured away from the auction site. In some cases, scammers will try to convince bidders to complete a transaction outside of the auction site, perhaps by telling losing bidders that the seller actually has more of the same item available. Leaving the Web site means you are no longer covered by the protections and guarantees provided by the auction business.

Use a secure form of payment. Use a credit card or a secure payment service, such as PayPal, when purchasing items through an online auction. If the seller insists on using an escrow service, always research that business fully with the BBB. Never wire cash payments – such as through MoneyGram or Western Union – to someone you don’t know.

For more guidance you can trust on how to shop safely online, visit www.tucson.bbb.org.