Comment

Comment by Thom Colby CA Brkr 888-391-5245 on November 19, 2013 at 11:07am

And when we look back to when Auction.com operated under their previous name  REDC, their on-site lender was Countrywide!

Comment by ElizabethWeintraub00697006LyonRE on November 19, 2013 at 10:54am

I want to say thanks for fighting the fight, too, Dail; but I would also be remiss if I didn't point that short sales don't have to be fair to sellers or buyers. They don't have to be fair to VA buyers. They don't have to make sense or be fair to anybody because they are at the bank's whim.

As for Auction.com, I can't imagine a buyer wanting to pay over market for a home by paying that 5% premium, but auctions sound like a really hot deal to buyers. Auction, oh, wow must be a super hot property! Because buyers aren't as sophisticated as the banks, so it's easy to take advantage of them as Auction.com probably does, in addition to probably slipping a few bucks to the banks that refer them business. Everybody has a hand out in a short sale.

Comment by Thom Colby CA Brkr 888-391-5245 on November 18, 2013 at 12:02pm

Richard - the last (final) Nationstar / Auction.com I worked on - Nationstar flat-out told me they would continue to increase the price until the seller gave up and they could foreclose - which is exactly what happened.  It was Nationstar serviced for Deutsche Bank.  These are a complete waste of time. Let them have them - we need to spend our time doing more productive ($$) work.

Comment by Richard Worcester on November 18, 2013 at 11:59am

Dail,

Thanks for fighting the fight, man. I'm right there with you. We have CAR and State Atty General looking at it. The bottom line for me is I will take it to the supreme law of the land, to see if these "conflict of interest" companies have the right to break a contract between a willing seller and buyer. Maybe they do, maybe not. In my opinion, they should have to negotiate the net, and if they don't like it they can foreclose. To worm their way into our contracts is not right. 

Rich

Comment by Thom Colby CA Brkr 888-391-5245 on November 18, 2013 at 11:50am

A couple of things;

1) Anytime an auction is involved whether it be an automobile auction, an art auction or real estate - there is always a Buyer's Premium between 5 - 10%.  Do I like it, no, but its a fact and the way the business is done.  I was an Estate auctioneer in the 80's and that's how we got paid - just like agents get a commission, auctioneers get a "premium" (commission) - the difference is that the Buyer pays it rather than the Seller.

2) THIS IS IMPORTANT - Did the seller / borrower provide written authorization for you (listing agent) to speak with Auction.com just like they did for the lender?  If not, you should not be speaking with them!

3) Auction.com is NOT owned by Nationstar, they have investors like LNR and Stone Point Capital..  Remember Auction.com is simply a rebrand of REDC who started out many years ago selling swamp land in Florida (so I'm told).

4) You will not win.  Nationstar holds all the cards and since they are neither a bank nor a bank holding company, they are not subject to banking laws.  They have been buying servicing rights and portfolios in the billions of dollars and quite frankly "control" the mortgage business post origination.

5 The negotiator you're trying to reach at Auction.com is likely a licensed agent  - and when the sale finally dies, he/she will get that listing for Auction.com

I haven't taken on any Nationstar short sales since they foreclosed on a property I had been working on for a year and they sold it for 20% less than the offer that was submitted.

Lastly, if the investor is Deutsche Bank - run like hell......  you have wasted enough of your time already.

Good luck !

Comment by Ellen Dittman on November 18, 2013 at 11:12am

Dail, after reading your comment, I dont think the 5% premium makes any sense either. I'd like to see what thier success rate is with this Auction.com procedure. Betting it's not high. Maybe a tax write-off?

Comment by dail kyle on November 18, 2013 at 10:53am

Hello,I work with George Kenner, Keller Williams Realty- Chula Vista I am negotiating a short sale with NationStar and we have a VA buyer ( and a Border patrol officer too). We have a full price offer (from comps) and have it accepted. We are negotiating through Equator as directed by Nationstar Then we got the Nationstar 'two step' and were shifted to Auction.Com.  We know who the investor is for this particular loan. We have tried to get written communication from Nationstar stating that their actions are being based/directed by and in the best interest of the investor (US Bank). We have have repeated phone calls fromAuction.com rep. The only messages that were left were to: "call the AuctionDotCom, Michael Solomon, on his cell". He even documented his 'attempts' in Equator as failed communications. We have tried to communicate via Equator and he is not listed at an addressee so we have been sending the communications to the listed supervisor. To date, nothing has been heard back in writing. We did advise our client and the Listing agent to digitally sign the forms sent to them trying to protect our client's rights and show fiduciary duty to the client. We have communicated to higher levels trying to get this issue resolved in a fair and equitable manner for all concerned. 

Well, we have done a video and wanted to share it with all of you. We feel, like I am gathering that most of you feel also, that the adding of on the 5% premium is not in the best interest of the new buyer. And in our case, a VA buyer is not allowed or able to pay the premium. So I guess they are narrowing the potential number of buyers that will give them the highest and best value for the involved investors be eliminating this class of buyer. 

Before I get more involved, here is the link to the video that we posted to inform our fellow professionals.  ( Nationstar, Real Estate Agents, Auction.com and Veterans-FHA buyers). Also, George Kenner, publishes a blog under http://shortsalenurse.com/. Here is another video that was put together on our attempts to get fair dealings for all concerned. He is the recipient of the prestigious award- one of three realtors in the entire state of California by the California Association of Realtors®. (George Kenner, Recipient of California Association of Realtors® Champ) Please feel free to share all videos to our fellow professionals. 

I have to fall back on thinking of why Nationstar (who bought out Auction.com) would take this path...As in following the money trail. Is this just their way of getting another cash flow stream? Is it in the best interest of the industry? In the best interest of both the buyer and seller? In full and fail dealings? In a manner that is forced on our fellow professional to act in a manner outside of current contract law? Really???

Thank you for your time and consideration in allowing us to express our frustration about the manner this is being handled. I hope you find value in the videos attached. (Note: we will only right the 'wrongs' if the 'silent' majority speaks up and takes action. )

Respectfully,

Dail Kyle, Broker

Comment by Ellen Dittman on November 12, 2013 at 6:22am

Thank you Vikki, Great to have the advance knowlege. 

Comment by Thom Colby CA Brkr 888-391-5245 on November 12, 2013 at 4:31am

Debbie - I expect if the "Buyer already in Escrow" is the highest offer, they will be forced to go through Auction.com and pay the 5% Buyer's Premium  - so whatever their offer, it will be 5% higher !

Comment by Debbie Tuttle on November 12, 2013 at 3:50am

I have one with Nationstar also.  Going thorugh Auction.com as they contacted the Seller and told him no Auctionm.com,no short sale moving forward, so he agreed to this. Auction.com  "Open house" set for 11-16. for only 2 hours. Let you know how this all plays out.  We already have an above list price offer & are in Escrow with this buyer.  Had 9 offers on home. If the process goes as planned and the Buyer still is able to stay in the transaction and not get bumped by an Auction.com offer, I will let you know. Anyone else have this experience, please comment, thanks.

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