Nationstar / Auction.com
What's your story? Is your client being forced into Auction.com?
Replies to This Discussion
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Permalink Reply by Bill Sloss on
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Go back a page and see another comment very similar to yours. You have what may be a pattern to help your cause. Youll need to determine how realtors are being harmed in the process so you have standing but you might find a receptive AG.
Sounds like Thom has someones ear.
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Bill, for some reason I can't reply directly to your reply to me. I do appreciate the advice, but I'm not sure I got my question answered. Thom mentioned that the investor usually counters above what the house is worth. I was wondering how that compared to the appraisal value of the house, and thanks to your follow up comment, I can guess that if they do so it's possible that an interior appraisal will lower the value- BUT, if they are already countering over the initial appraisal value, I'm not really sure that matters so much. We're the buyers, and we can walk away. I do appreciate you explaining the different types of appraisal, as none of the houses I've bought have had an exterior-only type. I've never heard of that so I will find out what they are doing.
Again though, does anyone know how the counters compare to the appraisals?
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It matters quite a bit depending on the condition and your contract and buyers.
Did you read your contract and what does it say about back ups? Its in your best interest to not allow back ups otherwise youre potentially hurting yourself as a buyer
Make sure youre not confusing yourself when you say appraisal value. What are you calling an appraisal value and from who?
Youll see values on realtor.com, tax records, assessments etc. those arent true appraisals. Appraisals ar based on comps. You know there are different comps so you answered your own question. They may have picked higher comps. You and your realtor are in the area the lender is not. A comp two blocks away on the lake is very different than one next to the mall. So take advantage of your logical pluses and minuses. If you love the house and it sits overlooking a landfill dont forget the landfill. Only you know what youll settle for so you have to draw up every negative if you want a more favorable comp to you. If the inside of the house has issues make sure you make those issues known. Is your realtor negotiating or is someone else? Make sure you are aware and they are aware of your exact thoughts and wishes. If you dont tell them the house has poor drainage and needs a roof dont assume anyone but you knows. I dont like to say fight but thats what you have to do. You have to push your ideations to your realtor and start there. You can read horror stories or good ones but the task is yours. The more you understand and the more you know the more it will help you. Walking away works against you and the thought of walking away can work for you. Youre the buyer without you its a house for sale. Do they want to sell you the house or not? Make sure you get good communication and status updates. Its a procedure. Do you know the history of the house and the loans? How much is on the table. A house with 2 or 3 loans is harder to deal with than 1 obviously. There are some houses that will never sell and will be foreclosed on. What kind of house is yours? Mine was pulled from public auction twice. That favored me. If youre looking that a house that was bought wrong and burdened with debt youre looking at a higher priced house? Do you know your situation?
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Not going to get into potentially personal, financial, or location specific details on a public forum, but we're very knowledgeable about the situation and the house.
I'm just trying to find out what the experiences have been with the countered offer from Nationstar's investor have been compared to the appraisal value, since Thom said that they tend to counter for more than the house is worth. I just wanted that information expanded on. Thanks.
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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Gina, in the few Nationstar / Deutsche Bank transactions I've been involved in, they have countered higher than; offers; appraisals, BPOs and COMPS. In one case I completely understood because the actual Fair Marlet Value was in the mid-$500's and the Debt they were holding was close to $2 Million.
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Permalink Reply by Jeff Payne on
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Gina X, most likely you are going to get a counter offer above market value, after all Nationstar is going to attempt to get as much as they can for the property. There are too many variables, Investor requirements, market conditions, Mortgage Insurance (PMI or lender placed)... the list goes on and on. You just need to decide how much you are willing to pay for the property and let your agent negotiate it out for you. The house is ultimately worth what you will pay for it, what you will pay for it is not necessarily what Nationstar will accept. Don't get caught up in interior vs exterior BPOs and appraisals, be concerned with what you will pay for it and stick to your plan.
The bank does not care what you or your agent think the property is worth
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As I said last week, we had submitted a new offer in Equator, all cash, close quickly and truly Fair Market Value. I called Nationstar last week and the negotiator "would not take my call". Customer Service told me, Nationstar will not speak with me. Remember, I've been vocal about this Nationstar / Auction.com bullying tactic and have pointed out how illegal it is. This morning Nationstar (Deutsche Bank) took the property at Trustee Sale.
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Permalink Reply by Karen Curtis on
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That is too bad, have your clients moved out? I don't know if you saw the post about my client that was foreclosed on without her knowledge ( or the Trustee's or Deutsche Banks knowledge) in July 2009 by Deutsche Bank. The trustee said it never happened even though he recorded a Trustee's Deed in July and Deutsche is on the tax records. At one point last year he did ask her to sign a rescission of the Trust Deed. I met with her Jan 2012 she was still in the home and had been given 3 three modifications AFTER the foreclosure. They have offered a fourth modification through Chase's (the servicer) attorney even though the property is not in her name. The modification that is on the table wants her to agree the property has not changed hands since she took out the loan. I don't think Deutsche knows what they own maybe your client can stay in the home for a while.
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Deutsche Bank is clueless. This was a 2nd home in a resort area. They have not vacated.
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Is there an update on the legal actions filed on Nationstar and auction.com? Is there anything that we can do to help with the legal actions filed? This really needs to be stopped.
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Nationstar never ceases to amaze and confound me. Earlier this week, the listing that prompted this discussion reverted to the Beneficiary at Trustee Sale. When I checked Equator it continues to show "VERIFY OFFER" status. A few hours AFTER the Trustee Sale I received a counter offer from the negotiator at Nationstar;
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Permalink Reply by Deb Espinoza on
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Nationstar does in fact FORCE the seller and list agent into Auction.com. My seller was within days of getting the short sale approval letter from Nationstar- Citi (the second) had already given full written approval of the short sale. Both lenders had approved the value from their BPO's and my buyer's offer was greater than the BPO values. Buyer had been waiting over 2 months- all cash investor offer as the home needed some major work. We got a call from Auction.com stating that Nationstar was now using them and that we HAD to sign the agreement to let Auction.com market the property or Nationstar would not proceed with giving us the approval letter- This "new process" had just started a week earlier. I messaged the Nationstar negotiator thru Equator that we were not interested in going with Auction.com and that we had an accepted offer and value was spot on... I was IGNORED and got a vm from Auction.com about a week later. The gal said it was "just a process that will be used to validate our current offer". I explained to seller and recommended we sign the contract with Auction.com as this was stated as the ONLY WAY the short sale would proceed and be approved. After signing and sending back to A.com I was given a link to a web site where I had to okay an open house and the auction date was set for Thurs-Sun the end of the week following the Saturday open house. A.com also mailed me out THEIR open house signs (which I tossed) They also instructed me to put explicit wording in my MLS listing (which I got in trouble with MLS for because it used a ".com" wording and info that is not accepted in our local MLS). I told seller and buyer that the A.com valuation process would complete in the next 2 weeks and then we should get the approval letter. HOWEVER- on Friday I get an email from someone at A.com telling me that my buyer had better register and pay to be a buyer bidder or they stood the chance of losing the home. My investor refuses to pay to register and to have to pay an additional 5% OVER the price of the offer to A.com and I tell A.com how ridiculous and unfair this is in the first place- Nationstar can counter my buyer but the Buyer came through MY marketing and he should NOT have to pay A.com- plus I was told they were only "validating our current offer". 2pm Sunday afternoon I have an email from A.com "congratulations we have accepted an offer for your listing!" Yes - I flipped out!! Nationstar refused to respond to us because A.com has the file now... A.com insists we have to accept the offer since it is 'conveniently" $2500 more than our already accepted offer. The investor buyer is NOT from San Diego County, has NEVER set foot in the house nor has their agent and the deal is set for closing in 2 weeks. My sellers had not found a rental to move to and they were sick with panic. I explained that we were not signing anything until we got answers and an offer with at least 45 days to close- that they could not be forced out on the buyer's or A.com's time frame- but there was no way to counter so we would just wait it out... After 2 weeks of getting nowhere with Nationstar we were told by A.com closing manager that we don't sign anything until Nationstar accepts the A.com offer - so I am still thinking Nationstar will just counter our current buyer or we can discuss the solution. The following day the same gal at A.com sends a contract (now on CAR forms) from THEIR buyer with a closing in 30 days stating that Nationstar did accept it and that the seller needed to cancel with the current buyer and accept this offer. Nationstar declined current offer in Equator and still no communication about being totally lied to, deceived and railroaded into doing this. The A.com contract requires and has the buyer and buyer agent acknowledge that they personally viewed the home _(they did not) and that the buyer is not a licensed agent (the CAR form has typed in that 2 or more members of the purchasing LLC have real estate licenses. We pointed this out and A.com basically said they don't care. A.com has been hounding us to close ASAP- we cannot because 1. Sellers can't move for a month, and 2. the second approval letter is no longer good because the buyer is now changed, so we are now having to re-negotiate with Citi to get the second approval redone... I called legal at CAR and I am told that all this is totally okay because Nationstar as the mortgage holder/servicer has the right to accept or deny short sale offers or terms as they see fit since they want to get the most from the sale. However, our buyer was not given the opportunity to counter (outside of the ridiculous 5% premium fee of Auction.com- if he had been then Nationstar would have gotten more money, but that is a moot point now.
SO- If you have a buyer that has an offer in for a short sale in which Auction.com will be brought into the transaction you should know what their contract says:
1. It costs to register with them to even bid
2. what ever your winning bid is- you can add 5% to that for Auction.com's cut
3.You will have to put your deposit into Auction.com's escrow company as soon as A.com accepts your offer (even though the seller has not accepted yet and there is no full written short sale approval)- AND just because A.com accepts your offer does NOT mean the short sale has been approved by ALL parties and it may take months to get all approvals to actually open a "real escrow"
4. It would be close to impossible for any financed offer to work with Auction.com since their contract CLEARLY states the buyer is waiving all contingencies for: LOAN, APPRAISAL and INSPECTIONS. Which is impossible for financed offers unless you are willing to possibly lose your ass if things go sideways.
So BE WARNED- Protect yourself, you sellers and your buyers and FIND OUT if Auction.com is working on the deal because if so, you will lose ALL CONTROL
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