A short success story.

I fought Nationstar on Auction.com and won.  Lots of research on this forum helped and I even got a call from an agent in another state that really helped guide me.  The short story, we (the buyer) were in contract with money in escrow and NS pull the Auction.com card.  We had a mediator on the deal and she eventually elevated this to upper management at the "Auction.com department at Nationstar."  They finally capitulated and said the program was, in fact, optional.  We were allowed to proceed normally with our short sale.  We closed last week.  Horray.

You can fight Nationstar on this.  They know sellers are over a barrel and are trying to get any money they can for the house.  While that is understandable, their tactic is not.  

Fight on. 

Views: 3749

Reply to This

Replies to This Discussion

If anyone has any advice, that would be appreciate. I had the homeowner type and sign an opt out letter. A representative t the Auction.com department told me to do this as well as escalate the issue with the negotiators manager. I finally got a hold of Sam Ross, manager for the Auction.com dept and he was completely unhelpful. I know they will push this, but they are refusing to even look at the offer we have. 

How can move forward? Is there anything specific I need to mention???


Sean Ryan, 

I did exactly what you advised and Nationstar backed down and my client did not have to go through Auction.com. My client's lawyer sent a letter to Nationstar (through Equator) basically saying: 

"The seller is opting out of the Auction.com program.  The property has been listed with a Realtor and a qualified buyer has been obtained at fair market value.  I see no reason why the seller should be forced to use Auction.com and breach the contract with the current buyer. 


"Auction.com is a kickback program, which provides Nationstar with a financial incentive for steering Sellers' home sales into purchase by Buyers who are paying a secondary Buyer premium benefitingAuction.com and Nationstar. This violates RESPA's steering provisions against lenders who would require Sellers to use settlement services which provide a kickback to the lender. You have already ordered and obtained a third party value opinion, which is the industry standard for offer value validation, so any requirement to use Auction.com is clearly designed to add unauthorized and illegal financial benefit to Nationstar, NOT to "validate" offers. If you intend to decline our sale to force us into your settlement steering policy, please do so promptly and in writing, so that we may add this case to any class action that may be forming, and to our AG/DOJ complaints."

Within a few days, Nationstar sent the same letter back asking the seller to sign/date and return it to Nationstar. Then 5 days later, Nationstar said that the seller does not have to use auction.com. Of course, Nationstar warned that the short sale may be denied/closed and the property may go to foreclosure if the seller does not agree to use Auction.com. But I advised my seller/client of the risks and advised her not talk to anyone at auction.com or at nationstar about auction.com. Nationstar backed down. Auction.com is the biggest headache, if you read any of the reviews online, it's atrocious. Biggest scam. 

I hope this helps, and thank you Sean for letting us know about this way out!



© 2019   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************