I have listing which was with B of A. I procured an all cash offer for 500k. The loan was transferred to nationstar they revalued the property at 650k. I countered the buyer and he came up to 575k. Then auction.com stepped in. They tried to get my buyer to enter the bidding through auction.com but he would not because he didn't want to pay the 5% and he didn't think that there would be a higher offer. He was correct., The highest offer for the auction was 565k and the person making the offer never saw the property, did not have all cash and was married to the agent that wrote the offer! Nationstar and acution.com are now insisting that the seller accept the auction.com offer, even tho it is lower and not all cash! They refuse to acknowledge the contract for the original buyer, that was ratified by the seller months ago.
Nationstar claims that they are using auction.com to ensure that they get the highest amount for the property but this in not true since they are insisting on taking a lower offer, just so auction.com can get paid. I really don't understand what is going on here. Why would they insist on taking a lower offer?
Since I am representing both buyer and seller, I can not just cancel the buyers contract after he has been waiting 6 months for this house, in order to take an inferior offer and I can not tell the seller to sign an offer from someone that has never even seen the house!
I am contacting my attorney today regarding auction.com and their shady practices. I think realtors need to get together and do something about this problem before it gets any worse.
Nationstar has said that if the seller does not agree to participate in auction.com, they will foreclose on their property and not allow them to do a short sale. This is crazy!!
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Hi Carol,
I am a buyer on a shortsale property that was transfered from BOA to NationStar/Auction.com.
I was told by Auction.com that since I wrote an offer on this property I should wait until Auction is finalized.
Once they know the final bid they will offer it to me and if I was not interested they will sell it to the bidder.
Yeasteday the property gone through online auction with auction.com and I watched it and the final bid was 200K
My offer was 180K
I contacted Auction.com to let them know that I will buy the property with 200K price and the customer service told me that I lost my chance of purchasing this property since I did not bid on it. I was tols to wait and now I am told I should have bid on it.
The shortsale department is closed today.
I need an attorney to fight this.
Also send all correspondence to both your state Association and NAR. Those lobbyists and attorneys should be aware of what is happening also if they don't already. I have not had this happen yet thank goodness but have heard other similar horror stories about Nation Star & Auction.com.
Good luck!
Gigi Ryan, CRS CDPE SFR
Mt Shasta, CA
Please help
I am a buyer on a shortsale property that was transfered from BOA to NationStar/Auction.com.
I was told by Auction.com that since I wrote an offer on this property I should wait until Auction is finalized.
Once they know the final bid they will offer it to me and if I was not interested they will sell it to the bidder.
Yeasteday the property gone through online auction with auction.com and I watched it and the final bid was 200K
My offer was 180K
I contacted Auction.com to let them know that I will buy the property with 200K price and the customer service told me that I lost my chance of purchasing this property since I did not bid on it. I was tols to wait and now I am told I should have bid on it.
The shortsale department is closed today.
I need an attorney to fight this.
Auction.com creates many complaints. Your legal rights are about your contract with the seller. Auction.com seems to willfully interfere with these contracts. You should complain to your state attorney general about auction.com breaking your contract. They should be stopped. You also might get some traction by complaining to your state senator to have him discuss with NationStar their "ethical" use of this company. 2 other potentially useful places to complain: Office of the Comptroller of the Currency at (800) 613-6743. Consumer Financial Protection Bureau at (855) 411-2372.
Since NStar tries to force auction.com on the seller, you don't know what he has agreed to in violation of your sales contract.
You might also catch auction.com on various practices w/o a license. Are they real estate agents in your state? Are they lawyers in your state. Probably not. A complaint to your state banking commission about NStar could be helpful.
Banks don't worry much about the law, you need to apply political pressure. I would try to find out if they had the seller violate the contract (like agreeing to use auction.com when he already has a fully executed contract), then complain to these various organizations about NStar's and auction.com's lack of ethics and legal interference. Then bring in the lawyer. Lawyers are expensive, so I leave them to last.
The bank does not have to take a short sale. On the other hand, that doesn't give them the right to interfere in a legal contract. Auction.com has been known to demand kickbacks from the seller, cut agent commission, give properties to lower bidding buyers, so you are talking about an ethically challenged company that should be dealt with appropriately.
i have a short sale right now that is in the same predicatment with Auction.com
I submitted the offer on a property for $200K the interior bpo came in a a little around 100K - 150K (hut rehab) extensive damage to everything sheet rock walls, mold, plumbing, electrical everything,
After and offer was accepted by the seller and submitted with signed contracts following, I received a message thriugh equator advising that the next step is Auction.com. My seller has refused to sign, with auction.com they call me every day i dont take their calls, i advised them that a signed contract is a legal document document in NY state, and for the seller to agree and sign to accept offers from other parties when he has already accept an offer and signed a contract validating that offer is a breach of Contract and both seller,his attorney and myself is open to a legal lawsuit and tremendous liability. that didnt phase them. her answer was oh yes , but we have done numerous sales in NY . we are not signing and if they want they can take the property, see how they fare out with vandals, drug dealers, squatters, sanitation and health tickets accumulating, cost of foreclosure, taxes and risk of the property being burned down by illegal activity
No one should sign their bs contract just let the properties sit there> see how far they change their policy
Nationstar and auction.com are in bed together hanky panky and someone should investigate their practices
I have just gone thru the same problem with Nationstar. BOA switched the file that was with another servicer to Nationstar when we had already been told the file was approved but not released to us. Nationstar started the file over again and then within a few weeks we were all of a sudden contacted by Auction.com telling me the next step in our short sale was with them! We went thru the auction process- and in one weekend for a little more money to the bank and a lot more to Auction.com the original buyer that had patiently worked thru the system for several months was replaced by the auction "winner". The "winner" terminated a week later, the original buyer terminated instead of participating in the auction process. Now we have no buyer and a seller in danger of foreclosure. Now I am told to bring another offer and start the process over again. OK, let me get this straight. Start all over again (we have been doing this since February). In the case of full disclosure tell potential agents and their buyers that once they submit an offer it will then be held hostage while Nationstar and Auction.com work to get a better offer and eliminate them.
Clearly time to go to the state AG. I don't know if NStar is under OCC, but if so, complain to them, too. Auction.com interfered with a real sale and then walked away damaging the homeowner. Both NStar and auction.com should be in front of a jury for their blatant, and repeated damage to homeowners with no positive results for anyone except NStar will continue to be paid by the investor to "manage" the property. Wanton damage for their own gain despite their contract with the investor, too.
Let me know how it goes. I have one right now that is at a standstill because my seller refusing to sign with auction.com
Call your Attorney General.