Nationstar / Auction.com
What's your story? Is your client being forced into Auction.com?
Replies to This Discussion
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Permalink Reply by Bill Sloss on
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Heres an unrelated case sorta but its a CA case Thom. LA Case # BC 392576 2008
"A lawsuit filed in California Superior Court challenges real estate auction practices, charging that some auction companies engage in deceptive advertising and violate provisions of federal law related to real estate closing services.
"Many modern real estate auctions are nothing more than a bait-and-switch scheme to lure hopeful buyers to submit offers that can later be accepted or rejected by the lenders/sellers, despite the general public’s perception that once the auctioneer declares, ‘Sold,’ the property is in fact sold," the lawsuit charges."
- See more at: http://www.inman.com/2008/06/17/lawsuit-challenges-real-estate-auct...
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First of all, I think Auction.com is a bunch of gangsters trying to muscle in on every aspect of distressed properties ( maybe that's also a way of saying they have developed strong relationships and have a successful business model).
I don't want Auction.com near ANY of my deals.
But, I see nothing illegal in their actions, or Nationstar's.
Are they a pain in the butt for us and our sellers, cost us money and time, and cost our buyers more money? Yes.
Is it illegal? No.
Nationstar can require any condition, the use of any vendor, method of approval, etc. as a requirement for a short sale approval-since it doesn't violate any law. We can try to stretch, twist or manipulate interpretations of existing laws all we want, but it doesn't make this illegal. There is no restraint of trade, tortious interference, etc., etc., etc.
Nationstar is not bound by law to approve a short sale period.
We DO need to find a way to keep Auction.com out of our short sales, but attacking it from the view that it's illegal, and the state AG's should be looking into it, is fruitless-unless shouting from the mountain top just makes you feel better.
We need to somehow show Nationstar and BoA we can do better for them without Auction.com.
I haven't dealt with them in a short sale yet, I've just got two FNMA loans with nationstar, but I will be saying NO and fighting it to the top.
As for their actual auctions, yes they are generally a waste of time, for buyers. But, you either have to be slow witted, or don't read the disclosures, to not realize the high bidder is not guaranteed the purchase at that price.
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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Wayne - you are correct. I cannot see anything illegal about Nationstar utilizing Auction.com to sell properties they OWN or properties that do not have a signed and confirmed offer between the ACTUAL OWNER and a Buyer. When they interfere with an existing Purchase Agreeement, that's where I have the problem.
If they want to use Auction.com on every property they service, fine. They just need to decline every short sale request that is submitted to them for consideration if it doesn't have Auction.com's stamp on it.
Interfering with an existing contract between a Seller and a Buyer seems to me to be illegal - but I'm not an attorney.
Interfering with a Listing Agreement between an OWNER and a Broker seems to me to be illegal - but I am not an attorney.
Again, all they have to do is decline the short sale request and eventually take it at the Trustee Sale. Once they own the property, they can do whatever they want with it.
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Permalink Reply by Tony Morales on
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Tom, here's my 2 cents. here in Calif before the Attorney General gets involved on a real estate related matter only after it is brought to them from DRE they research Business and Professions code to see what is being violated.
Auction.com is a licensed real estate corporation in Calif. By them soliciting sellers to procure a buyer through their "service" is no different than another agent calling your seller and telling them that they can get a higher offer for them. That, I believe, is where the violation lies!
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Bill, just be clear to anyone else: No, I am not an attorney and anythign posted here is based on facts purely as I read them, and should be taken with a pound of salt.
Bill. I'm not clear which issue your recitation of PA "Theft by Deception" is supposed to apply to; the "required" use of auction.com for short sales, or their actual auction process, where the high bidder doesn't necessarily get the property. I can't see it applies to either one.
Thom, by requiring the use of Auction.com, Nationstar is no more interfering with any purchase/listing contracts than a bank who rejects a short sale due to price, a non arms length transcation, etc. When Wells Fargo rejects the price on a short sale transaction, is that "intereferring with a contract between a seller and a buyer"? I think not. Nationstar/any lien holder does not have to approve anything. They can dictate any terms, price, affidavits, procedures, etc. they want, in order to approve a short pay off. Tortious Interference generally involves a third party coming into a situation and causing one of the parties to Breach a valid contract. Again, withholding Approval for any reason, OR requiring certain conditions for Approval of a short pay off, doesn't constitute any type of legal interference, or violation of any other law.
We both want the same thing, and I applaud your fire and enthusiasm, but I just think the legal avenue is off course.
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Wayne, please see my response to Thom
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Tony, I was looking at Nationstar's role, in that they Can require whatever they want. Auction.com, soliciting a homeowner, as opposed to Nationstar requiring their use, is different. But, and I know CA has some wacky laws, soliciting an owner with a listing is probably not a violation of the law, but a violation of Realtor ethics. And yes, it's hard to reference auction.com and ethics in the same sentence.
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You guys are on the right track "And yes, it's hard to reference auction.com and ethics in the same sentence."
You have to take the next step. Where do ethics and the law meet? If theyre not the same guess who wins? Youre weak on that. Youre not really but youre not expressing it right yet. When you can answer that question and make your case to the AG youll see the change.
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Permalink Reply by Wendy Starling on
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I just spoke with a very knowledgeable RE attorney - he advised me that in the state of Utah, there are currently no laws in place that would prohibit the lender from instituting this type of requirement. They can dictate just about anything they want, in the frame of "These are the terms under which we will release our lien" and the seller can choose to meet those terms or not. NOT the answer I was hoping for. He recommended, as many on this thread already have, to take it to the AG's office so that this can be changes.
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Permalink Reply by joe beauchamp on
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A possibly useful distinction: NationStar seems to be tied to Auction. NationStar is the servicer to do the bidding of the "lender" or investor. If they are jacking FHA to Auction.com, I don't think HUD would push for it. If NStar is doing this to FNMA, FHLMC, FHA, etc., I think complaints to these investors could be helpful.
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Dear Short Sale Superstars community,
Thank you all for reaching out with your concerns regarding Nationstar and Auction.com. In all cases, the seller is not Auction.com, but the actual financial institution that holds the loan. We simply provide the online platform for all sellers, institutional and private, to list their assets for auction. You can view the FAQ page for our Market Validation program here: http://www.auction.com/marketvalidation.php. With that said, please contact Nationstar to address your concerns at 877-343-6386. If there is anything further I may do to be of assistance, please free to reach out to me or my Customer Service Supervisors Yamir Gonzalez or Vicky Hernandez at 800-793-6107.
Sincerely,
Peter Chevalier
Director of Customer Service
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Peter -
Thank you for providing contact info and a link for Realtors, Agents, and Brokers to learn more about the process. That said, NONE of us can speak with Auction.com, Auction.com Realty, Lender Liquidation Company, Lender Must Sell, REDC Realty Services, or Red Crown Realty or any other entty of REDC / Auction.com without the express written permission of the OWNER of the property - NOT because the Servicer nor the Investor said so.
YOU, Auction.com, Auction.com Realty, Lender Liquidation Company, Lender Must Sell, REDC Realty Services, and Red Crown Realty are competitors, not advocates of Realtors, Agents, and Brokers.
The Servicer and / or Investor cannot, to my knowledge, legally insert Auction.com into an existing Contractual Relationship between Owner and Broker or Owner and Buyer. That's interference. Many owners have not been given a "choice" but rather have been forced into foreclosure.
My displeasure is not wholly with Auction.com but rather with the servicers who are forcing you upon our contractual clients. When someone from Auction.com calls me, I will not speak about any property unless the owner has provided written authorization to do so. Many times "Eric" will not take that as an answer.
My issue with Auction.com is a completely different issue having met with your execs.
Thanks again for providing platform to express ourselves.
This discussion forum is being closed after this posting.
cc: Kamala D Harris, Attorney General for The Great State of California
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