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

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Yes, It is up to the investor but because I had someone else controlling the investor, HUD, which they said it couldn't be done, we are going to have a regular short sale with the buyer in place that has waited since February. Hey, I could have easily double ended as I had a cash buyer willing to pay more than probably what anyone would pay and not do an appraisal, but I have ethics and I wanted the buyers' agent to get his commission that he deserved. Would you mind sharing the name and contact information of the person that you have been dealing with at Nationstar just in case I have to deal with this lousy bank again? I dealt with them two years ago before all of this auction.com nonsense and it was a great transaction and I praised them to any agent that would listed. NOT ANYMORE!

I had an episode with Auction.com last spring so I turned it over to our Department of Real Estate.  After 6 months I finally got an answer - kind of.  The head of the DRE had turned it over to the Attorney General's office and they sat on it for months, the attorney that had it left and did nothing and gave it back to DRE.  By the way our AG just resigned over a scandal of being investigated for illegal campaigning, etc.  The charges were dropped but he ended up leaving.  Anyway, the DRE said that since Auction.com has a real estate broker in the state, they can carry on the Auctions.  I asked him about my fiduciary duties, etc and he said I may want to consult an attorney!  These guys don't know what end is up, especially in a consumer non-friendly state such as Utah. Does anyone know what the NAR has to say about this?  I have another Nationstar short sale, I am just waiting for them to pull the Auction.com card.  Good advise to contact the lender directly, thanks. 

I had posted elsewhere that during a HUD webinar, they stated that HUD does not support auction.com and if you have a problem with a servicer forcing auction.com on you, call them and they will fix it.

I have had one good experience with NStar, but that is probably because everything was done when the file was transferred from BofA to them. The other times have been a chore, at best.

I now call Nationstar  the new Ameriquest

Funny I have other names that come to mind to call them!

Where's that Webinar? I would like to send it to my client...

Sorry, it was a live webinar a couple of months ago. I don't have a record of it. Probably at the time of their rule update. They sent no followup note about it being online, but maybe they don't do that. It was aimed at agents and the rule changes. Sorry.

Fannie Mae, Freddie Mac and FHA owned loans will not allow for a 3rd party to negotiate the short sale even if it is at the  servicers request.  NON GSE investor's might want to use this action process as a way to increase the buyer pool and liquidate the property quickly.  This will then result in auction.com wanting 1% of the 6% typically allowed for the real estate commission. 

Fannie Mae's Standard Short Sale Guidelines SVC 2012-19 page 1 states:

Following transaction costs not allowed: 

Fees paid to a third party to negotiate a short sale with the servicer (commonly referred to as “short sale negotiation fees” or “shorts ale processing fees”) must not be deducted from the sales proceeds or charged to the borrower.  Additionally, the servicer, its agents, or any outsourcing firm it employs must not charge (either directly or indirectly) any outsourcing fee, short sale negotiation fee, or similar fee in connection with any Fannie Mae loan;

Freddie Mac B65.40 (f) Short Sale negotiation fees prohibited states "fees paid to any party to elevate, negotiate or process a short sale with the Servicer, which are commonly refereed to as "shorts ale negotiation fees" must not be deducted from the proceeds.  Additionally, neither the Servicer nor its agents may charge FHLMC or the borrower, either directly or indirectly, any fee whatsoever in connection with processing a short sale".

Not true, Kathleen   Freddie Mac does allow servicer to use Auction.com.  And Auction.com does not get 1%

The only time this will be allowed is if the loan is in a Pool and Servicing Agreement and the FHLMC loan is in an Actual/Actual pool.  T

 Karen Curtis     If you have an EXCLUSIVE Agency, how does that permit another company to "have a borker in the State" and market and sell the property. It does not!!      I am putting a clause in my listing agreement on the Naiton Star I am about to do the "the home owner agrees not to participate in any auction or other marketing program" If they foreclose so be it. It costs a lot of extra time and money on the agent part to get involved with these and they are taking commission away on top of it. Just plain don't see how it is legal to interfere with an existing contract and call it part of Nation Star approval process.

Yeah, probably the best protection for yourself, but just against the seller doing something like agreeing to the auction. And, of course, you have to think about collecting from someone financially in bad shape to begin with. NStar can say no to anything since you are asking for permission to short sale, so "legal" pretty much doesn't come into it, of course..

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