Auction.com requirement - is this even legal?!
I am an agent representing both buyer and seller (transac broker) in FL. The title company is in the process of submitting the short sale docs and has been told of a new requirement this morning.
Even though we have a legal, binding contract on the property, NS is requiring the seller to put the home on auction.com for 2 weeks before they will consider a short sale. If the seller does not comply, we are told his only option is foreclosure. We have been told that if there is an offer for less than the current contract amount, the current buyer is still in the winner's position. BUT if a new buyer offers MORE than the current contract amount, that offer will supersede.
How is this legal?!?! There is a binding contract on the property! (with a buyer whose family consists primarily of attorneys and law enforcement, I might add) There are so many things wrong with this I don't know where to start. For starters, the buyer could sue the seller for specific performance if the other buyer's offer was accepted. The original buyer is not even afforded an opportunity to meet or match a bid - unless they sign up to auction.com. Where do agents come into play & how are they compensated? To whom is the offer submitted - the seller or the lender? This whole thing REEKS of wrong and unethical.
Has anyone else heard of this? Who/where could this behavior/policy be reported? RESPA? Any suggestions are welcomed. I am awaiting receipt of the letter they require seller and agents to sign - will upload once I receive.
Much thanks!!
Kim
Replies to This Discussion
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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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 Kim Wennerberg on
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Here's a quick update on the short sale that started this discussion. We have not received anything in writing, but we have been verbally APPROVED FOR THE OPT-OUT. I'd like to think this is a minor victory but we are far from the end, so we're not celebrating quite yet. Nationstar made it clear that if they reject the short sale contract, the seller WILL be required to participate in auction.com. So of course I suspect at this point that the opt out allowance is merely a delay tactic in order to ultimately get the property on auction.com. Will update again once we hear more.
BTW this was achieved by ignoring the pressure calls from auction.com and going straight to the realtor assistance desk and firmly stating the seller was choosing to opt out.
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Permalink Reply by Sarah Davis on
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Excellent. Thank you for this positing. We are going through a VERY similar thing right now. Thanks for sharing your contact's information.
Do you have any update? Were you able to opt out and get the transaction approved?
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Sarah, we have not received acceptance nor rejection of the short sale offer at this point. We have finally been assigned a negotiator a couple of weeks ago but no word yet. That said, we successfully opted out - this time. If it's rejected, I'm confident they will require the buyer to go the auction.com route. Glad you found some useful info! Wishing you success in your short sale!
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We received an approved price from Nationstar that is higher than our contract price. The buyer is going to now walk, so I'm fearful/anxious of what will happen next with the onslaught of auction.com.
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Permalink Reply by Becky Alfaro on
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Just wanted to update everyone. I received an approval after rejecting Auction.com. We did get the run around initially but the approved purchase amount ending up only 10k above initial offer.
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Permalink Reply by Winnie on
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Hello Kim
Can you tell me how you can get reject from Auction.com? I have three file and they forced me kick buyer out and I dont want to deal with auction. Thanks Kim
Also if any contact or form I can get them reject auction.com
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We did this by going straight to the realtor assistance desk phone line and firmly stating the seller was choosing to opt out. We just got another contract on the property at exactly the price countered to us by nationstar so we shall see if they continue to force auction.com down our throats.
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can you give me the number because I dont see it in the forum? Thank for your information
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Permalink Reply by Ben Benita on
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Winnie, will you send me the opt-out number as well - [email protected]
We now have 2 where Auction.com (serviced by Nationstar) are insisting the Seller try them first (even though BOTH properties already have Buyers in place).
Thanks!!!
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[email protected] or call 1-877-343-6386
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Folks - How can you speak with Auction.com at all without the written authorization of the borrower / seller?
You cannot.
Also, Nationstar cannot "assign" Auction.com (or anyone else for that matter) to market a property they DO NOT OWN.
The Purchase Agreement is between the Seller and the Buyer who signed it. Try forcing Nationstar to make a decision on the short sale you have presented to them - they will NOT. They will simply state "Auction.com is now part of our Short Sale Process". It may be part of their process, but without the Seller / Borrower's written 3rd Party Authorization you actually cannot speak with Auction.com. Therefore Nationstar will have to either decline, counter or accept the offer presented.
Keep telling them "NO" regarding Auction.com (if that's what your client wants). Remember, even if, the same buyer you have presented an offer from wins with Auction.com - they will have to pay an additional 5% to Auction.com. And, by the way, if you participate with Auction.com, you will need to remove your Brokerage signs and replace them with Auction.com signs oin order to earn your commission.
Good luck - I no longer do any business with Nationstar or any others who "utilize" Auction.com
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