So without going into all of the long drawn out story, here's the basic facts. This all started in late 2011 roughly 2 years ago.
Loan originally Aurora - got an approval ($275K cash 7 day close ) but buyer walked because it took too long
Loan moved to Nationstar - got another approval different buyer ($275K cash 7 day close) - this buyer also walked because it too too long to get the approval
Ready for 3rd approval with another Buyer (@$290K cash 7 day close) - Nationstar countered at $314K - Buyer said OK because there was $16K in past due HOA fees at $675/month. Nationstar demanded (verbally and through Equator) to use Auction.com - Buyer not interested in being "ransomed" into the 5% Premium - he bought the house next door - model match and not Short Sale for less money. Seller not interested in Auction.com.
Nationstar foreclosed in April 2013.
Property Sold as REO for $273,525 in 7/2013 (1% commission)
Now listed in 10/2013 for $359,000 as a "flip" after some paint - owned by an LLC.
And, the former owner is being sued by the HOA.
So, Nationstar actually could have sold this property just under 2 years ago for $314,000
The inmates are truly running the asylum.
This transaction history should be sent to the Attorney handling the lawsuit for all the investors that NatinStar has screwed over the last few years.
Standard practices for these clowns.
Here is some info: KIRP LLC v. Nationstar Mortgage LLC, 650794-2013, New York State Supreme Court (Manhattan).
It is their disposition to forget their due diligence to their own investors and use their advantage to enrich the website owners, which curiously enough are linked to NationStar. When speaking with any processor it is always good have all facts at hand, not that it would make any real difference but it can realize to the processor that the agent is fully informed of the NationStar perspective toward expanding the website profits and you never know how it could turn out. It’s all about how you navigate the waters of these short sales, not so much anything else. Because if you can not close, you are not making any money.
Add to your listing agreements (which are legally binding contracts) or listing addendum that seller will not use auction.com as a remedy for default.
I like Pattilynn's suggestion - force them to deal with things in writing that way, etc.
Not FHA, right? HUD said nyet to auction.com and anyone being forced, talk to HUD if FHA.
A few years ago, I followed a few of the houses to see how they came out, w/o knowing holding costs, etc. Yes, I was right, had a better buyer than they ever got. Of course I concluded that no one follows assets completely, certainly not the servicer and the main investors are just sticking taxpayers with losses while lengthening the time they keep feeding servicers through foreclosure then REO.
But then with several, I could just follow the history from when a year ago or 8 months ago they had a buyer at 40% above the current buyer and they fight and claw to get more than the current offer but a lot less than they would have had way back then. Dumb dumb dumb. But, the servicer gained in dragging it out and "only" the investor got screwed (and the extra time/money/work for agents and all, of course).
Thanks for yet another fine industry example of ... well, not sure of what to call it..??