Complain to OCC about Auction.com?
Auction.com, formerly known as REDC (or so I am told by a title expert I work with) does not appear to be doing business ethically. As a listing agent, we are not supposed to pass the cost of business onto a buyer. So how is Auction.com forcing sellers into their service and then charging the buyers? I would assume this is potential for a lawsuit.
Do you think there is any benefit to filing complaints with the OCC for every file we have with any banks that try to force the Auction.com hand? I threatened litigation and complaints with Nationstar, then filed a complaint with the OCC. Once the OCC complaint was filed, they backed off the Auction.com requirement quickly.
I'm just wondering if we can really escalate the issue of companies like this where they are forcing their hand in the cookie jar - seems like the cookies only crumble anyhow.
Thoughts?
Replies to This Discussion
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Permalink Reply by Smitty on
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I don't know much about auction.com. How are they forcing sellers to use their services? I haven't run into a situation like that yet. All the auction places around me charge a buyer's premium. That's standard practice.
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Permalink Reply by Jeff Payne on
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What do you mean by this statement? " As a listing agent, we are not supposed to pass the cost of business onto a buyer. " Just curious because there are many short sales where the buyer pays for the negotiation fee and I have negotiated many regular sales where the buyer paid normal seller costs including commission.
The best thing I have read about Auction.com is that with them being a licensed brokerage, they are interfering with your contract with your client by stepping in and contacting your client.
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Permalink Reply by Jessica Griffith on
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It was once explained to our office, by a managing broker, that a listing agent cannot pass the cost of doing business off onto a buyer. If we, as listing agents, hire a negotiator, we cannot make the buyer pay that fee. Other than that, I believe a buyer can pay the commissions, but it has to be disclosed on the HUD. Fortunately for some agents, not all banks require a dual HUD and therefore agents have been able to pass this through without difficulty.
I do appreciate that you pointed out Auction.com is a broker and there are interfering with agency relationships. I wonder if they are allowed to take an already accepted offer and choose a higher one over the accepted one?
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Jessica, I believe that your managing broker must have had their own rules as there is nothing in the code of ethics or any laws that say a listing agent can not pass on costs to a buyer. It is very common in short sales that the buyer pay for negotiators. As far as buyer paying commission, it would be on the HUD, on the buyers side.
Remember that you as a listing agent are not the seller and the contract is negotiated between buyer and seller and EVERYTHING is negotiable.
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Permalink Reply by Asefeh Shirafkan on
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Hi Jessica
I am a buyer that now is dealing with Auction.com on a shortsale property that I wrote an offer with BOA.
Once the loan was transfered from BOA to NationStar I was informed by the listing agent that NationStar do not want to negotiate with the shortsale and they gave the file to Auction.com
Auction.com contacted me to register with them and if still wish to buy the property to bid on it on auction date.
I had a signed purchase contract and was in the middle of negociation with BOA.
BOA inforned the listing agent that NationStar will continue with the shortsale process and the property will not go to Auction.com.
I contacted Nationstar and asked for a manager to call me but no one returned my calls.
Nationstar wants me to purchase the unit with the higest bid with no option to do appraisal.
If you know of class action please let me know
Thank you
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By the way, Can i contact OCC
How do I contact OCC???
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