I have a young couple who wants to move out of state, they were denied by HAFA - Nation Star put them through their traditional SS program ... summarized:  want them to come with some money and sign a $15K note! They have 2 children, and a conservative budget.  The purchase offer is CASH, over market vaule - and in an area that has been one of the hardest hit outside of Phoenix. The properties in there neighborhood range from 50K to 75K, this offer for more. AZ is a non deficiency state, FNMA loan. They cannot add more debt to their finances, I told Nation Star this - this morning I got this distressing email through equator:  "The Short Sale Has been denied by the Servicer" ...  Similar Experiences?

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I had a very similar experience with Nationstar last year.  I had a townhome listed and the price was $119,900.  We got a CASH offer for $110,000.  The file was assigned to a negotiator very quickly, which impressed me.  The agent who did the BPO was an out of town agent, who basically took the last 6 months sales prices and averaged them to come up with a "fair market value" of $119,000, not taking into account all the units had seller paid concessions of at least $5,000 and the most recent sales were significantly below the $119,000 "fair market value".  Nationstar countered back the buyers at $119,000.  The buyers said no.  I tried to escalate - was told it was FNMA's decision.  I went to FNMA and they said it was Nationstar's decision!  Nationstar said the only way we could challenge the "fair market value" was to have an appraisal done, or provide the appraisal from a recent sale, which of course we couldn't!  Before I could order an appraisal to be done, Nationstar started foreclosure proceedings & the buyers walked.  Nationstar foreclosed at the end of September 2010; it came back on the market as an REO in December 2010 at a sales price of $99,900 (and seller paying 3% in closing costs).  It did not close until February 2011 at a price of $89,900!  And Virginia is a deficiency state!  This transaction defied all logic & reason!

Oh my Barbara, that is very distressing!  I just spoke to another Agent in our area and Nation Star recently denied a SS for one of her client's who has cancer!  

Nation Star did counter this offer, and the Buyer accepted, that was over a month ago ... when I would ask for updates - they would not reply or tell me it was still in review.  It is awful that a Lender/Servicer has such  a negative impact on the market and people's lives.   I won't give up - and hopefully will have something positive to share.

Hi Barbara,

I found this link in the SS superstars FNMA site, an assistance desk in many MLSs across the Nation, ARMLS, (us), has this escalation process.

 

https://www.efanniemae.com/is/reprofessionals/pdf/ssadfaqs.pdf

Oh my goodness Harry that is terrible news.  I wonder how they sleep at night!  It is ashame that people have had their dreams of home ownership shattered - that the economy is what it is, and that Agents who work months on end spend much time, money and effort trying to help stabilize the market only to have others, (Servicers such as Nation Star) crush the hopes of  Borrower/Sellers moving on to a more hopeful future, and also the dreams of the Buyers who wait patiently to find they cannot purchase a home they had great expectations for.  Not to mention the neighbors who don't want a vacant home deteriorating and depreciating their values even more,  inviting vandals, etc.  What is wrong with this picture!?  Where is the common business sense in this!?  I cannot grasp it.  I wish there was something we could do to stop foolish decisions that affect so many.  My poor client is ready to have a break down.
I closed on a nationstar yesterday and another one next week. Both were approved in less than 60 with waiver of deficiency. One seller brought 2k to closing. The other signed a note for 5k.

Bryant - would you like to share how you did that --  all that I have spoken to have not had sucess with them as you have.  I had to escalate a file on another Nation Star Client before I could get any response at all, lost one offer because the Buyer got tired of waiting, and now it looks like after a series of unresponsive phone calls and emails, and escalating, we will finally be closing the 2nd offer with a new Negotiator - and the Seller is having to make a cash contribution, they relocated for employment and shouldn't have to in my humble opinion, but want to be done with this, fortunately their parents are able to help them.

I still have hope for Nation Star, I believe they are a smaller company that has been slammed with all these deficiencies.  

I have contacted an attorney we work with, who specializes with distress property, she is researching options for our Client.

We were originally negotiating with Citi Bank on the subject file,  and they sold to Nation Star a few days prior to approval back in November (started this process with Citi in September) -when I first spoke to Nation Star they acted as though they would be a pro-active company to work with, had a Negotiator right away, seemed like things were moving along,  we ended up losing the first  Buyer after several months. A few months later received this offer - a few more months have passed and now it looks like the second purchase will not be approved either, my client is not able to sign a note for the large amount they have asked for. It truly saddens me.

It does sound very suspicious!  I spoke to another Borrower a few months back, and they were trying to do a loan mod, their loan was with Chase also, and then sold to Nation Star, and they couldn't get their loan modified.  ... For the record, I don't know that Nation Star is a small lender - it just seems that way to me ... they were so difficult to contact, voice mail boxes full, emails unanswered, etc.

I asked myself the same question - why would they take these loans that were already in default????

Harry Clay said:

Terry Parrish said:

We were originally negotiating with Citi Bank on the subject file,  and they sold to Nation Star a few days prior to approval back in November (started this process with Citi in September)

There you go...almost the same scenario as mine.

Why would any business buy out a bad loan on an upside down property @ the very last minute, unless they are somehow set up to absorb or transfer losses, or take tax write-offs, or collect insurance on paper that has already been deemed toxic & hopeless?

I think NationStar serves as a dumping ground for negative assets of bigger corporations who want to make their books look cleaner to the FDIC.
If NationStar is truly a "smaller company that has been slammed with deficiencies"...then can anyone explain why they are "buying" default paper so late in the game?

 

Terry. Nothing special. They were both ran through the Equator system. We countered each deal once and they accepted. Maybe I just got luckly. These were my only 2 shorts with Nationstar that I negotiated. I have another listing with Nationstar where the short sale was negotiated by an attorney (Richard Zaretsky, one of our Short Sale Superstars). That too was approved in about 60 days with no issues.

Wow,  I am having a similar problem.  I have a listing in Freeport, FL it has septic issues and is condemned.  The average sales price in the neighborhood is around 90K.  Nationstar countered at $127,100.  There have been no sales in the neighborhood in 2012 to support anything near this price.  The buyer countered this offer at $95,000....really good counter.  We sent over documentation of the Health Dept issues, comps, etc, etc.  Nationstar denied the short sale.  This was a bad debt they picked up from Aurora.  It is my theory that they "Nationstar" will probably do better on this particular deal if the property forecloses;  so they counter high and are quick to deny.  BUMMER.  

I did a short sale with Nationalstar a few years ago and it was great but these things can be a moving target.  Bank Of America used to be a nightmare and now I welcome their short sales.  I guess you gotta follow the money.

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