Replies to This Discussion

Permalink Reply by Wendy Smith on March 7, 2013 at 10:57am

good points Kim.   

Permalink Reply by Tni LeBlanc (805) 878-9879 on March 7, 2013 at 11:21am

Well said Mega Pros.

Our focus should remain on our client's best interest.
If I feel something is interfering with that or attempting to interfere with it -- It's not for me.

Also, these entities are HUGE, have a lot of power and they serve only THEIR own interest. 

Permalink Reply by Mega-Pros on March 7, 2013 at 5:52pm

Well said, Tni. I was just reading through the newest B of A shortsale update I received today that they are stating they will now only accept 'their' 3rd party authorization forms and that those can be changed on a whim. (attached) I have a standard 3rd party authorization that I use in conjunction with any lienholders required authorization that states that I am contacting the lienholder and that "this is an attempt to repay a debt and that mutual cooperation is required," it also gives me the right to record calls, just as the lienholder does, among other things.

We DO have to protect ourselves as well as our clients and the mood in the shortsale marketplace overall suggests of something bigger brewing underneath. I think all of the underhanded tactics lead right back to the issue that Kim started this thread with.

Lienholders do NOT want licensed brokers in this arena and do NOT want the homeowner/borrower to have any advocacy. Tni, you are also correct that many of these people facing default situations will not have the money to fight back with. I am in a non-judicial foreclosure state and many of my clients would not be able to afford an attorney.

There is a lot of advertising for investing in these "hedge fund" companies that are coming in and buying these homes in bulk at the auction. Check out this hedge fund named American Homes 4 Rent, LLC now operating in at least 6 six states and buying HUGE volumes of homes for rentals. Of course if you have bad credit, such as a foreclosure would indicate, you will pay a premium to rent from them.  It would also be very easy to engage in price fixing for inferior and unsafe dwellings.

By the way, American Homes 4 Rent LLC has only been around since 2012. In less than one year they have amassed more than 10,000 homes through foreclosure auctions. Is anyone believing that this guy is paying FULL MARKET VALUE for these homes? I don't think so.

This hedgefund announced on 2/27/13 that it is going "all in" in pursuit of an IPO. From my brief research, I can only find record of this company starting in June of 2012. Folks, that is 9 months ago and they are already growing faster than the Facebook phenomena.

So once again, we are creating a securities bundle to eventually be sold in the futures market, while simultaneously wiping out affordable housing for the middle class and leveraging the outmoded and publicly traded (for profit and scarcely regulated, btw) Credit Bureaus to turn the whole damned system on it's head. (Side Note: Equifax reported 10.2% profits over 2011 in 2012 - guess how they get paid? By each Negative item they report about a consumer)

The only difference is that now, the security is "future ROI on rental properties" rather than mortgages. This is one of the last syphonings of American assets we will probably see in our lifetime as this could be enough to break the back of America completely if it is allowed to continue.

A few elite members who manage the hedge funds profit from the 7 - 10 year inferior credit score of a borrower who Forecloses, rather than sells short or does a deed-in-lieu. Then they rent the home back to the displaced borrower, or to someone else in the exact same situation, for a healthy profit and have the ability to drive rent prices in an area sky high.

Think about it - we are tied into economic and employment centers, school districts, transit routes... it really isn't that difficult to see how the market is yet again being manipulated.

I am sure others have noticed how the rental markets increase markedly in any area where there is a significant amount of shortsales/foreclosures. I forecasted this scenario 3 years ago and have been watching it unfold.  It seems as if the players are tired of sitting on the sidelines even pretending that greed and picking the bones of their less fortunate neighbor is not driving this change we are experiencing in the shortsale marketplace.  Just my two cents-

Attachments:

• 03-07-13_B of A_3rd Party Authorizations.pdf, 82 KB

Permalink Reply by Tni LeBlanc (805) 878-9879 on March 8, 2013 at 7:01am

There are definitely big forces at play right now.  You can FEEL it, and there is plenty of evidence. 

And make no mistake, by increasing the amount of big corporate influence in short sales they are limiting choice for the real estate consumer.  If I wanted to put a home on auction.com, I always had that as an option.  But mandating that for a short sale?  That's nuts. 

I do believe there is a siphoning of wealth and assets as well -- I know there are a lot of qualified people paying rent who would rather own a home.  And there are many people losing homes who were convinced that the value was high, they took out loans and are now stuck with boated loan balances.  Homes are being trickled on the market -- yet they are sold to other entities for pennies on the dollar in bulk in secret side deals while the masses beg for an opportunity.  What is going on?

 

These homes in our communities are being held hostage and we are being manipulated.  And what will be the end result?  Nothing to buy until prices are driven up and BTW enjoy paying inflated rents in the meantime.  In my area, rents are so inflated it's ridiculous.  People's salaries are being cut all around yet rents are up $400 - $500 a month.  It's unsustainable.  Why are these entites being sold homes that people would gladly buy, and at rock bottom prices as well?  We all know that some homes have to go through foreclosure -- they are simply tied in too many knots.  However, why are so many homes being sold to investors at cheap prices? 

 

Permalink Reply by Kim Wennerberg on March 8, 2013 at 7:35am

I've been on this site several times but this is the first I've posted a question. I'm overwhelmed with gratitude for your response! Thank you - I know how busy life is and I appreciate each of your comments. 

I'm attaching the letter sent to the title company. And as an aside, while agent compensation isn't the most important factor of course, if a new buyer arises, I'm out the other half of the commission. I just don't like being railroaded...I understand the lender can choose the circumstances under which they accept a short sale - HOWEVER there is a big difference in whether they accept a short sale and HOW a short sale is handled. I'm the professional agent representing the guy who still owns the house - and have been an agent for 15 years - I wouldn't risk my license and livelihood over a $35,000 short sale!! (or a $3 million short sale for that matter). Let the agents who know what they're doing do their jobs - and get out of the way. THAT would streamline things. Sorry to rant...

Wendy, you asked if it's owner occupied - he was living there but moved out about a year ago and is living with family (however it was owner occupied up until that time). You said you'd take auction.com over Fannie Mae's inflated values - and I agree their values are ri-di-cu-lous. However, why do we have to always choose between the lesser of 2 evils?! Either one is a mess if you ask me.

My seller signed this doc - but I am very nervous agreeing to this. I've contacted the legal hotline for Realtors in FL (thanks Tni for the suggestion) but have not heard back yet. Will update when I do. Thanks again to everyone! 

Warmest,

Kim

Attachments:

• auction.comletter.PDF, 580 KB

Permalink Reply by Kim Wennerberg on March 8, 2013 at 9:04am

Just heard from the FL Realtor/FL Bar hotline - and for the first time in my career, am shocked at the rudeness & condescension by the guy who called me back. He was so incredibly dramatic and ugly - and in the end, said the lender isn't party to the sales contract and can do anything they like. His cavalier attitude wasn't necessary, however! But the answer was the lender can do whatever they like. I told him he would do well to go work for them since he was clearly biased based on his behavior!

Lastly, the title co rep was skeptical of all this also...so when googling the guy's name who called her saying the seller must participate in the auction.com site, it said this guy worked for auction.com - NOT NS. So, until she can get clarification directly from NS we aren't doing anything at all. I wonder if auction.com is a "preferred partner" to NS and as soon as a borrower applies for the short sale, their information is sold to auction.com. My seller just informed me that he received an overnight pkg from FedEx from NS this morning. So they are working fast to get this done whether legit or not.

Permalink Reply by Wendy Smith on March 8, 2013 at 10:03am

That's very interesting -  I've been contacted by Auction.com on my listings but never had any of the reps lie like that - It would be appropriate to report this liar to Auction.com management, don't you think?

Permalink Reply by Bryant Tutas on March 8, 2013 at 10:21am

I have this going on right now. We tried to opt out but NS sent me this:

Good Morning, Bryant,

Nationstar has teamed up with Auction.com to assist you in marketing this specific property.

We are very excited to present the opportunity to reach a broader market through multiple forums, obtain competitive offers from a diverse group of potential buyers, and expedite the short sale process, just to name a few benefits.

We look forward to your continued cooperation in this auction component, the next step of the short sale process. I would like to remind you that we are here to help you as much as possible, and again are very excited to have teamed up with Auction.com to move forward on this sale and produce optimal results for all parties involved. END

I see zero value to my seller. However since we do not have a contract yet we are going to give it a try. I'll come back and post about our experience.

Permalink Reply by Kim Wennerberg on June 12, 2013 at 5:48am

Hi Bryant,

What is the latest update on your short sale and auction.com? I'm curious, as my short sale contract price has been countered - and my buyer is now walking as a result. So now we will put the property back active on the market. Knowing the push for auction.com is about to hit full force, I'd love to hear the latest with your experience. Thanks in advance,

Kim

Permalink Reply by Rikki on March 16, 2013 at 5:27pm

HI Kim, Just wanted to see if you had an update regarding your listing and were you forced to list your property on Auction.com? Did you speak with anyone at Nationstar and did your sellers have to comply? Any sort of update would greatly be appreciated as we are experiencing a similar situation.

Permalink Reply by Bryant Tutas on March 8, 2013 at 10:36am

Just stopping back by to thank you guys for a really insightful discussion. Hard to believe we are only 5 years out of the crash and the real estate market is once again getting out of control. This is going to be an interesting year. 

Permalink Reply by Dominique Van Ryckeghem on March 13, 2013 at 3:34am

Just got an email in Equator about this.

Here's one serious issue that merits discussion: what about junior lien holders?

I'm in a situation where Green Tree is 2nd (charged off) and demanding 20% or roughly 22k. The buyer we're in contract with is paying for the difference between the 22k and the 6k that Nationstar is offering. Do I honestly think any of these auction buyers will be willing to pay the the difference? Doubt it and I doubt they care about HOA liens and anything else that is out there.

I'm saying they're using Auction.com to get a pulse on what a portion of the market is willing to pay for a house and they'll use it to pull the plug on short sales if Nationstar feels they can get more by foreclosing and then listing it themselves even though those so-called buyers are not vetted at all.

The whole thing makes me nauseous.

I guess I shouldn't be surprised with psychopaths running things.

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