NationStar requiring Buyer to apply for pre-qual with NationStar.
Replies to This Discussion
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Permalink Reply by Kevin - Greenville, SC on
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Permalink Reply by Tracy Hatchell on
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Are you doing a regular or HAFA short sale with them? I got some grief from my negotiator a while back but asked to speak to a supervisor who was just awesome and got to by pass the loan pre qual requirement. They did offer up more incentives if the buyer used them but the buyer had a long on going relationship with a local lender and would not do the pre qual with Nation Star. We cannot force them. It is against teh law. I wish agents like yo who are having this issue would email you US senator as well as your congressman to tell them the issues. I have sent information myself asking them to do a congressional inquiry because it is only getting worse! By the way, the REO properties are doing this now as well.
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Permalink Reply by Bryant Tutas on
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Kristy. They've been doing this for awhile. Its their standard procedure. The form is very simple and is really no big deal. I place the document as an attachment right in the MLS. If the buyer wants the prperty then they need to complete the application. They are free to use who they want for thier mortgage. In fact I'm not aware of the buyers even being contacted by Nationstar. It's just something they want for their files.
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Permalink Reply by Eric Mieles on
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Kristy I second Bryant. I have one closing this week. Buyers had there own lender filled out the one page ap for nationstar and I uploaded it. Done deal. No problems, no contact by them and approval letter in hand.
3k going to the 2nd
No deficiency or prom
3% concessions
And a 20k reduction from Fannies counter. All parties are very happy and away we go:)
Good luck
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Permalink Reply by DoesntMatter on
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LMAO @ Nationstar..very clever way to keep the money in the loop..
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NationStar responded that it was a requirement and that the file would be closed without it. I forwarded the Equator message to both realtors for feedback. So, how much time have we wasted on this? Hmmm. Don't really need any more negative thoughts for short sale buyers. Will have to see what the response it. I am staring at another app on a different NationStar short sale which hasn't been requested, yet. It is nice to hear the feedback as far as NationStar not contacting the buyer for this reason.
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Permalink Reply by cindy keil on
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Kristy,
I am in total agreement with Bryant, the lender investor has the right to verify that the buyer is good. All the lender/investors are requiring this, it actually is in the benfit of all parties to ensure the transaction will close.
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Permalink Reply by Julianne Thorne on
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Just another hoop to jump through. They want the opportunity to get that business, but cannot refuse the sale if not. No big deal to provide. Just another time consuming hassle.
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I'm not sure why so many of you think this "isn't a big deal"? My wife and I wrote an offer with a short-sale that was being serviced by First Horizon in february. We submitted proof at that time of our ability to close the deal. We waited for months for approval from First-Horizon, and we received a counter offer (which we accepted) a few weeks ago.
When checking the status a couple of weeks ago, we were told that Nationstar was taking over the process - last week, we received the "loan app" from Nationstar. For the record, this isn't some minor detail, the form requests your social security numbers, banking info, employment info, retirement info, and even you average checking account balance. This isn't the type of information you want to just email to some unknown party for some unknown purpose.
The idea that it somehow "protects" the seller is just not true - we submitted a loan pre-qualification letter, and would GLADLY allow nationstar to speak with our banker, but we can't just willy-nilly give them full access to all of our financial info.
The idea that this will "speed the process" is also wrong, they've had a ready-willing & able buyer for SIX months already..
The idea that filling out the form costs us "nothing" is incorrect as well. Every offer we've submitted this year has required a pre-approval letter. Every pre-approval letter requires a "hard pull" on your credit. Every "hard pull" knocks a few more points off your credit score. After purchasing a couple of homes and writing offers on others this year, we've got half-a-dozen "hard pulls" already on our credit report. When your score falls below 760, your interest rates go up. So this requirement certainly can cost us money.
I think our deal is probably irreparably kinked, not because we can't close, but because Nationstar is making up their own "rules" - rules that don't "protect" the seller or the investor - If this property goes back on the market, the next offer will be lower.
I really wish a few of you guys would grow a backbone and start pushing back to unreasonable requests from banks. It appears that at least some have pushed back and had the requirement dropped, but until more agents do so, these guys think they can do whatever they want.
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Mark I can understand your frustration however saying you wish some of us would grow a backbone is just plain disrespectful. I'll speak for all of us that use this site, that were here to be getter at our craft and reach success in our own short sale dealings.
Just the simple fact that someone was able to ask a question and get a number of opinions is in itself remarkable and a great service to the communities all across our country. There a thousands of other agents out there who don't use this site, don't know how to properly do a short sale or worse don't care, so I can assure you the ones on this forum are fighting hard to get the job done. We don't earn business nor get paid if we dont.
You state sending sensitive information to some unknown party for some unknown reason is not advisable. Well your not. Your sending it to Nationstar a financial institution. It is your choice I wish you much luck. Please fill us in on your progress. With your credit score and your time investment in this deal I can't see how you lose by having them do what they need to do and move forward to closing your deal.
Good luck.
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Mark. It's my understanding that the application is just going in the file. I could be wrong but that's what I was told. Nationstar requires it and I doubt seriously that they will approve the short sale without it. However it is a free country and your concerns are valid. You always have the option of not purchasing this property. Only you can make that decision.
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The agents here have been dealing with this (and apparently rolling over on this) for six months now. If more had pushed back during that time, I wouldn't be dealing with it now.
I wonder how you would respond to this request if it wasn't the loan officer they were trying to cut out of the deal? -
I.E. "ditch your Realtor, and use ours, and we will give you a FREE STOVE!"
It isn't ethical, it isn't right, it isn't a government requirement, it isn't what Nationstar is getting paid to do, it isn't in the interest of your client, or in the interest of the buyer.
It also isn't safe - I'm not sending all of my financial info to "nationstar" - I'm sending it to my agent, who's forwarding it to the seller's agent, who is sending it to a "short sale negotiatior", who's sending it to someone at nationstar, who is no doubt sending it to some unknown loan officer - all via email.
How many of those email accounts have "password" as the password?
Part of getting "good credit" is consistency - staying at the same job, using the same bank, keeping the same credit cards, etc - my credit file from five years ago looks pretty much the same now as it did five years ago - if any of those email accounts are hacked any time in the next 5-10 years, most of the info will still be accurate, and it's enough information to make my life a living hell.
Why do I need to risk that for a loan offer that I'm not going to accept? I'm certainly NOT going to take a loan from a lender that doesn't behave ethically! <--- why would I want to sign a 30-year contract with an unethical lender that makes up their own rules to benefit only themselves?
I do lose by walking away, but not as much as the seller does, this house needs repairs before ANY bank will take it, I was willing to pay extra to get another rental just a couple blocks from my other property, just for convenience. It's highly likely that this property ends up going at trustee's sale because retail buyers aren't likely to have the funds for repairs, and investors in my area want properties that are "turn-key" or extra cheap.
The seller & the investors get a LARGER deficiency, the agents and loan officer who've worked the deal for six months get nothing, and the neighbors get another lower "comp" to make walking away that much easier.... all because of this "requirement" that isn't even necessary.
Eric Mieles said:
Mark I can understand your frustration however saying you wish some of us would grow a backbone is just plain disrespectful. I'll speak for all of us that use this site, that were here to be getter at our craft and reach success in our own short sale dealings.
Just the simple fact that someone was able to ask a question and get a number of opinions is in itself remarkable and a great service to the communities all across our country. There a thousands of other agents out there who don't use this site, don't know how to properly do a short sale or worse don't care, so I can assure you the ones on this forum are fighting hard to get the job done. We don't earn business nor get paid if we dont.
You state sending sensitive information to some unknown party for some unknown reason is not advisable. Well your not. Your sending it to Nationstar a financial institution. It is your choice I wish you much luck. Please fill us in on your progress. With your credit score and your time investment in this deal I can't see how you lose by having them do what they need to do and move forward to closing your deal.
Good luck.
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