Nationstar / Auction.com

What's your story?  Is your client being forced into Auction.com?

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Permalink Reply by Karen Curtis on April 29, 2013 at 1:12pm

Nationstar just sent an approval on the offer we had in place when it went to Auction, even though the auction showed $11,500 MORE than that offer.  All of a sudden after the auction, they said the reserve was not met.  Our buyer did not register, thank goodness, it would have cost him a ton of money.  So if the buyer you have currently on the property has a good strong offer, let him know what happened to us, he may not want to gamble with it.  But remember, I did tell them this process was being reviewed by our Dept. of Real Estate and gave them a case number.  See my prior posting.

Permalink Reply by Wendy Starling on April 30, 2013 at 6:45am

Karen I'm also in Utah and having the NS/A.com roblem.  Would you share the Case # with me so I can use that in my next response to them?  Many thanks!

Permalink Reply by Karen Curtis on April 30, 2013 at 7:42am

Here is the number, RE13-64-525.  I have not spoken to the person that was handling the case and they have not contacted me.  The person to contact is Ben Kagie and his email is  [email protected] or his number is 801-530-6356.  He may have turned it over to someone else, I am going to try and call later today.

Permalink Reply by Bill Sloss on April 30, 2013 at 7:55am

Karen your story is very suspicious with the "imaginary" bid and the reserve "not being met"

If there is any angle or "false impression" that your buyer could have been forced to pay more and A.com profit your situation needs to be investigated from a criminal perspective. Unfortunately in guvmint one hand often doesnt know what the other is doing. Make sure youre happy with what youre hearing.

Generally creating false impressions involving money transactions is a no no.

If you feel youre right insist on results and/or an explanation

Permalink Reply by Karen Curtis on April 30, 2013 at 9:04am

I agree, it is very suspicious, but right now I am moving forward with the transaction and close, this is the best thing for my Seller and Buyer.  But AFTER this closes, I will be back to the DRE to get a ruling on the Auction.  They did not think, at the time I made the claim, that Nationstar had the right to sell a property that they did not own, but I still need final call on that from the Department.  It is my feeling the idea of the Auction will get shot down if enough agents stand up for fairness.  It may have it's place if a property is difficult to sell and there are no offers but to move in when there is a good offer on the table is very questionable.

Permalink Reply by Bill Sloss on April 30, 2013 at 9:11am

Talk to a prosecutor for the criminal law prospective. You have false impressions being created involving money. What will stop it is an AG not the DRE hitting them with some paper as a "Cease and Desist" and looking at it from the criminal angle. When you have differing actions of employees that's the only way to go. Individually youll be ignored. The only person with teeth is your AG.

Permalink Reply by SGJ on April 30, 2013 at 10:21am

Hey - I am a buyer in this mess right now.

If you read A.com's terms for a reserve auction, they say (paragraph 3 of the attached document)

Except where prohibited by law, during a live bidding event (online or otherwise) the Auctioneer may open bidding on any Property by placing a bid on behalf of the Seller and may further bid on behalf of the Seller up to the amount of the Reserve Price by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders. If no bidders meet the Reserve Price, the Seller is under no obligation to sell the Property (see “Subject to Confirmation” section below). 

Pretty shady huh?  It means that A.com can bid to drive up the price.  I'm guessing that is how this happened.

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Permalink Reply by Bill Sloss on April 30, 2013 at 10:47am

I was a buyer too and I feel for you.

Do you know what your contract says as far as back ups and continuing to market?

When I bought mine I excluded that in my contract. Of course they can decline your offer but then you wont be going through the anxieties

I am a very experienced retired state police detective who was "drafted" to work by request for my AG.

On one hand you have the contract and its terms a possible loop hole for one but on the other you have questionnable conduct. Without knowing the contract its tough to make a call.

Its not much consolation at the moment but if you read Karen Curtis comments they might be insightful. She went through what you are and it came out in her favor.

I would gather as much paper as you can ask your realtor their opinion and then make a complaint to your AG citing exactly what you said here "Pretty shady huh?  It means that A.com can bid to drive up the price.  I'm guessing that is how this happened."

But keep in mind youre limited by your contract.

Thom has done a very good job getting his situation to the CA AG.

 

 

 

Permalink Reply by SGJ on April 30, 2013 at 11:37am

Thanks for the thoughts Bill.

We are doing what we can to inform our seller/seller's agent/attorney and mediation company.  There are a lot of players in this one....unfortunately. 

I'm hopeful that by showing them the contract that Nationstar/Auction.com wants people to sign (see attached) - they will read the fine print and see that it is OPTIONAL.  

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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on April 29, 2013 at 1:14pm

Deb, 

1) Did the owner / seller / borrower provide written authorization for you to talk with Auction.com at any point?  If not, you were not authorized to speak with them.  Nationstar cannot provide that authorization for the owner (Nationstar is NOT the owner)

2) Are you representing both the Seller and the Buyer?

Permalink Reply by Karen Curtis on April 29, 2013 at 1:31pm

I did not get authorization, I didn't think about that and by the time you brought that up, my seller had already signed Nationstar's form.  But it is a brilliant point.  I am only representing the seller, but I have been working very closely with the buyer's agent, I felt he was getting a real bum rap, so I did everything I could to save the deal for him.

Permalink Reply by Deb Espinoza on April 30, 2013 at 3:51am

HI Thom-

I had the original buyer that Auction.com buyer outbid. We did NOT get an opportunity to counter. The seller was required by Nationstar to sign an agreement to allow Auction.com to do 'their thing" or the short sale transaction would NOT progress. It was a no option deal and we did try to fight it.. we both threatened Nationstar with attorney and when I called CA Association of Realtors Legal hotline I was told this was "too new" and they were not going to do anything yet and that from what they saw and were told, everything Nationstar and Auction.com were doing was legal... as Nationstar as the lender/servicer is the ultimate decision maker on approving the short sale and they can basically decline anything the seller and I send in and take whatever offer they want. 

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