As many of you may know, Nationstar now runs their short sales through Homesearch.com instead of Auction.com. And in case you were not aware, Homesearch is owned by the same investors that own Nationstar. Now my issue....Initial offer submitted for $385,000.00 sat on back burner while they transfer to Homesearch and then we went through that process and followed all instructions. The seller's ex wife was a bit uncooperative but did let us do 1 open house. The auction ended with no bids. File went back to Nationstar 8 days later. New negotiator counters our $385,000.00 at $420,000.00 The buyer refused to increase as it is at full market value. Advised Nationstar of buyer's response. They then send it back to Homesearch to do auction again I advised them no need as have good offer and no one will outbid it and have to pay 5% premium. Buyer got tired and walked. Homesearch went ahead and scheduled online auction again. They had 1 bid at $333,000.00 and now say they will accept that offer. I questioned why they would counter at $420,000.00 but accept a bid at $333,000.00 They have no valid answer. I can only conclude that there is a preference to accept a lower bid in order to assess the 5% buyer premium fee, Something wrong with this picture? Should CFPB get involved?
You should totally get the CFPB involved as your buyer's offer minimized the deficiency whereas Homesearch now has created a larger deficiency for the borrower. If we all did this and the CFPB was overrun with cases like this they would act and step in and say NO to this insane auction process both Nationstar and Ocwen are doing.
I could present that scenario but here in Calif, after a short sale, there is no deficiency. But unless they unwind this auction transaction I will be contacting the California Attorney General to at least investigate this "business practice"
Ok, but let's say that the Mortgage Debt Forgiveness act DOESN'T get passed, even if the deficiency is waived, I'm assuming in CA they have tax consequences too? Maybe not, but even then I would say it's still creating a larger gap than necessary which is never good.
No tax consequence in Calif either. But it could be stated that they are lowering values of other properties. This would be a recorded sale and could effect a comparable property trying to sell or refinance