I'm a 3rd party negotiator on a Nationstar / Deutsche Bank file. We've been working on this one for almost a year. We've had 2 offers - all cash - and at the asking price of Nationstar. Both Buyers walked away because N/S too too long to "approve" the short sale. Recently, N/S is requiring the use of Auction.com to solicit offers. Auction.com (which is also known as REDC and Red Crown Realty) has contacted us BUT, we are not authorized by the Seller / Borrower to speak with them.
Today N/S called me to discuss using Auction.com . I explained the Listing Agent (who has a valid Listing Agreement) has no desire to use Auction.com to sell a property she could sell on her own if N/S was just more realistic in their pricing. Another point is, Why should a Buyer have to pay a 5% premium to Auction.com? I expect this property will now likely sell at $80K less than our prior offers and since Auction.com will be involved, the buyer will have to pay an additional 5%.
So here's the rub.... There is $16K in past due HOA dues and N/S & Auction.com "don't know how that will be handled". Also, I asked if this will be considered an approved short sale fro deficiency purposes and the N/S person told me they would require a Promissory Note from the Borrower for the deficiency - INTERESTING, since that's Illegal in CA. I told the N/S person she was asking for a Promissory Note in a State where that is Illegal and her answer was - "I don't work on CA files very often so I am unfamiliar"
Nationstar needs to ensure their people are up to speed with the law.
Nationstar says they are using Auction.com as a way to validate offers - I guess they don't trust REALTORS and our Realtor Code of Ethics.
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