Nationstar forced us to use Auction.scum and now accepting a lower offer than ours by $25K

We too were forced to use auction.scum by Nationstar bank.  After the 72 hour turnaround time for Nationstar to make a decision and get back with us they did not!! It took another two weeks before I could get a straight answer, Auction.scum said "Nationstar accepted a high bid of $276K +5% despite the fact we already had an offer of $301K with the buyer paying additional fees for any and all disallowables including filling in the gap for the $20K that needs to be paid to the second lien holder.  We are now battling it out with both Auction.scum, which we have told them flat our borrower will not sign that contract as there is already a contract on hand and the buyer will not sign a release either!!! Nationstar made up a story how we did not properly upload the new offer; however, this cannot be done until Nationstar gives a "soft decline" thus, than triggering a task to upload a new offer into the OFFER Task bar!!! We had previously uploaded this contract for $301K on February 14, 2013 along with the POF on the message bar and shortly thereafter they requested a HUD and we provided them with such!!  Thus, they are either MORONS that do not know how to navigate through Equator or just acting plain STUPID!!! So Nationstar gave us the soft decline late yesterday afternoon and I uploaded the contract we have no hand for $301K... 


The Auction.scum, person we are in contact confirmed that NATIONSTAR does receive half of the 5% fee!!!!!!   This is so wrong that they can bully us into and thereafter agree to less money just so they can get their hands on additional funds which still will not provide the NET proceeds NATIONSTAR said it needed from the onset!!!!!!  Not to mention we have been trying to negotiate this file with Nationstar since Dec. 4,2012.


Will you keep you all posted as to the result of this ongoing battle with Nationstar and Auction.scum....

P.S. Is there any government agency we can report/complain about this to?


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Follow the $$$. FNMA and or Nstar are earngin money by referral or somethign in .scum activity. without a $$ interest there would be no push to .scum.

I know this is NOT what you want to hear, but you should spend the time and effort even though it may not make you a dime. IT is imortant to let the proper authorities know of fraud and misconduct.

Banks and FNMA etc MUST do all they can to effect the MOST in recovery.  To pay a third party and interfere with agency is unethical to begin with. to lower the return to an insured group it unethical. I would suggest that you send a bill for agency fees  to both .scum and servicer at the agent's wages under the previously delivered contract. Thier failure to accept a greater amt resulted in loss of wages .....they interfered with the real estate relationship and  contract and stopped it...etc..

Send all docs to the Offfice of the Controller of Currency OCC with a formal complaint and suggestions of insider dealings with aucction.scum and demands for criminal investigations, prosecutions and cease and disist orders etc.

Copy EVERYTHING to your US and state congressman and senators.  Demand a senate investigation into auction.scum and its interference in trade and practices, and to find out how much FNMA and or Nstar earn for the "referral". It is fraudulent and in bad faith...

Then, copy ALL to your state attorney general and the local attorney general. 

By requiring use of Auction.scum and taking a lesser offer than was achieved to begin with money is being earned by the scum for costing moneyto the investors (FNMA) and additional losses under mortgage insurances. Push this REALLY hard make sure you have dates times contacts demand letters to use .scum etc. .

One last thing, have your broker and every other broker you know send letters to auction.scum informing them that any future interference in the brokerage relationship between agents and sellers by them will be dealt with in accordance of law. Copy the letter to Nstar and every other servicer using the .scum.  Proactive is better in the long run. They may not even know that you have a client signed to does not matter....if they interfere in client relationship then there is recourse.

Great guidelines... I think if enough agents did this it could have a powerful impact. I think our professional organizations should be prolific in helping us to combat this shell game played by Nationstar and their in-league partner- I know that if we were to follow the money, we would all see what dealings (?maybe double dealings???) that I strongly feel are going on...ACTION is REQUIRED, IMO! Anyone have any additional thoughts?

Below is a good reference as to what happens when you deal with Nationstar (and

More on Nationstar Mortgage and

Last month we brought you some information on Nationstar’s news about their recent servicing asset purchases and short sale changes.  They continue to strive to be one of the nation’s largest servicers and they are standing out with a unique short sale requirement!  Nationstar now requires borrowers wanting to sell their home on a short sale to auction their property on for a period of time to try to bring in the highest bidder on their property.

After a short sale offer is submitted to Nationstar, they notify the listing agent that the property must be put up for auction on Despite the fact that there is a legally binding contract on the property and a complete short sale package was submitted for review, the seller must be willing to go through this auction process or Nationstar will not permit the short sale to continue. If the borrower refuses, they could be forced into foreclosure.

The listing agent must register as the broker through the website.  The registration process brings the agent to the website where a user name and password is created.  This registration allows the listing agent to see the property description, details on the website, and allows them to follow the auction process.  Nationstar notifies the agent of the dates the property will be auctioned and the agent must notify the buyer’s agent to let them know the buyer must participate in the bidding process if they want the property and a bid exceeds their current contract price.  In other words, if the current buyer has a contract on the property to purchase it for $100K and a bid exceeds their offer, they will have to bid against other bidders if they really want the property.   The buyer can continue to bid on the property through the end of the auction period.  At the end of the auction, the highest bid wins and there is no opportunity to counter the offer after the auction closes.  Once Nationstar has the highest offer, they say they will issue a quick short sale approval.

The listing agent remains the listing agent and earns their commission at the closing of the transaction.  Additionally, if a real estate agent does not represent the highest bidder, the listing agent has the opportunity to try to represent the new buyer to earn additional commission.

While this auction process benefits Nationstar, the listing agent and the seller, it has created some controversy.  Being able to accept the highest bid certainly helps Nationstar recover their asset purchase expense quickly and provides the seller an opportunity to lower any deficiency, but what about the investor and the original buyer with the legally binding purchase contract.

This auction process is not making investors very happy as a complaint was recently filed in New York State Supreme Court by the mortgage-bond investor, KIRP LLC saying Nationstar’s loan liquidations are a ‘blatant abdication’ of the company’s responsibilities as servicer of these loans.   ‘Nationstar has not fulfilled its duties as master servicer but rather has engaged in practices to enrich itself at the expense of investors, KIRP said.’  It seems these practices are also at the expense of the buyer with the signed contract!

Nationstar’s asset purchases increased 94% to $198 billion last year after purchasing assets of Lehman Brothers Holdings Inc.  Then their portfolio rose to over $300 billion after completing part of their deal to purchase $215 billion in contracts from Bank of America.

The complaint states that many of the mortgage loans Nationstar has auctioned only realize ‘a fraction’ of the total unpaid principal balance of the loans and are much less than the present value of the property that secures the loans.  It is argued that Nationstar could take other steps to minimize loss and do more to protect the investors, but the quick loan sales conducted on simply allow Nationstar to recover their investment more quickly.  Another issue seems to be the ‘business affiliation’ Nationstar Mortgage has with[1]

Nationstar is competing to become one of the nation’s largest loan servicers and it is likely we will see more changes in the short sale arena in the near future.   Uncertainly lies in the fact that the large loan servicers, such as Nationstar, are not regulated by the same entities that govern large commercial banks such as Bank of America and Wells Fargo, and they may not be playing by the same rules.

- See more at:

Always avoid submitting multiple offers in short sales. Doing so will prevent situations like this from occurring. Banks are greedy and they will push you around. Next time hire a reputable firm to handle the file for you and your clients and feel what it's like to push back. Never hurts to complain to the feds, but my advice with respect to that is to remove the emotions from your correspondence and get the timelines down to the detail. This is business, regardless of how unethical they have been.

In my opinion, this is another example of the lenders, servicers, and the GSEs/Investors ignoring contract law.

The NAR, CAR, and other state and local Realtor Organizations must fight this! The sales contract is, and always should be, between the buyer and the seller and their chosen professional representatives.

Certainly, the lender/noteholder has the right to accept or reject a short pay - they can take the money or take the property. 

But do they have the right to pick the buyer? The escrow and title company? Do they have the legal right to choose the seller's representation in the deal? I say NO.

Folks, the banksters don't have to win. Of course they have lost billions in the real estate value collapse. But do their efforts of recovery supercede contract law or the rights of the borrower? Again, I say NO.

Send a letter to the NAR, your state Realtor organization, your state and National legal organizations, whomever! Tell them of these outrageous developments. Tell them to take up this battle and fight for us!!! 

NationStar does not have to abide by the bank laws. They are not a "bank". The office of the comptroller does not even have jurisdiction over them. 

And they just bought Greenlight Financial this morning for $75 Million to expand their mortgage origination business...............  They will soon OWN the mortgage business.


I am on board with you... Somehow we need to get the "Big" boys (SDAR, CAR, NAR, PSAR...) in our arena (Real Estate) to ramp up their support of their paying members and represent them and deal with this issue and help the agents (members). I am of the strong feeling that if we could get the money trail exposed, we might be able to get them to adhere to basic contact law...Keep up the good job.

and the bigger they are the farther they fall...

dont kid yourself this is another class action waiting to happen and it will.

I just had the same thing happen to me with Nationstar. We had a contract that was submitted through Equator and they tried the whole route.  We stood our ground and told them no. There was much insistence from Nationstar and repeated calls from that we had to go that route I repeatedly told them no.  They eventually capitulated and issued the approval letter for our executed contract and buyer without dealing with  It seems that giving and Nationstar the virtual finger produces the desired outcome. 

Looks like Troy Jenkins has the winning recipe.  I am just starting work with a Nationstar file and I am going to do the same as Troy should the Auction word ever come up.  Good work Troy. 

It worked Steven and to answer Thom's question, yes I did have permission to speak with  I told them they could not force the seller to go this route and the basically had two options. They can cooperate with the short sale process and respond to the offer that had been presented to them or they can foreclose but they cannot force the seller to use their third party services.  Sometimes you have to play poker.  I've had similar situations with these smaller investors who are buying up loans in bulk.  They must assume Realtors have no idea what they are doing and they will just do what an investor tells them. 

I have a new seller and was actually looking forward to trying to get them into an situation. A CDPA broadcast that had the short-sale VP of BOA on in January I believe was quite positive about it. She said it was a new avenue and the cash back to sellers could go as high as 25K. What is the truth on all this? Sounds like I should avoid it like a plaque. The BOA shortsale rep actually knew nothing about it and advised after putting me on hold to ask, that it was something the seller had to be invited to do. It is a BOA loan and I was going to see about contacting tomorrow for information on all this. What is the truth?



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