I have a SS in with NationStar - the property is in very poor condition and legally land locked. They had a BPO done in September where the Realtor gave value with repairs of 430K and without at 389K. I have an offer of 83,500 after 8 months of marketing. The Auction.com process produced no buyers either. NationStar is demanding that the only way to dispute the value is to get an appraisal. I found ONE appraiser who might touch it, but he wants 1000. 00 to do it.
I have argued that NO Realtor is within the scope of their license to estimate the cost of repairs, escalated, filed a CFPB complaint, get the same answer every time. Now they are threatening to pull the file from Equator and foreclose.
I would let it go, but I have known this family for 30 years. It was the family home - mortgaged way too high in the "good years" to pay off family members after the parents passed away. They want to sell it to this young man who will restore it and make it his home.
My complaint had to do with NS not complying with a written request to give the name of the Investor and several other violations of rules. I did include in the complaint that they are relying on a BPO for fair market value when the Realtor that performed it had no right to estimate the value of repairs. Someone who is on a severely deteriorated property for 5 minutes certainly cannot and should not give an opinion of the repair cost. Talked to CAR legal, they agree with me - the Realtor stepped way outside the scope of her license.
Yes - I had the fully executed 3rd party. I am not denying BPO can be acceptable IF it is done within the scope of the license. My listing fully informed anyone who looked at it that the home was built without permits, has been altered without engineering, septic is failed, not habitable, multiple county code violations AND legally landlocked. For a Realtor to walk in, take a few very carefully aimed pictures and report the property is only 49K off FULL value is wrong. For NS to accept that, after being given all the facts in writing is also wrong.
The Seller of the property had every right to the name of the Investor - I had submitted a QWR - it was ignored. Through the complaint I was finally given the information. The other violations were procedural - they apologized and said they would straighten up. I have yet to see it. NS certainly does not process a SS like any of the others I have worked with.
From your posts I presume that this property is currently vacant. If there is no tenant (borrower/homeowner) living in the property these regulatory complaints aren't worth much to your campaign.
If all of the heirs cashed out their inheritance using old "pre-housing-collapse" mortgage guidelines to do so I am not sure why you are stressing out over this transaction. Both the servicer and investor probably know this. All they have to do is look at that old HUD1.
Your buyer needs to pop the whip on the appraisal fee up front as Brian suggested for there is probably no other way to navigate around all of this. You can also prep your sellers for a large cash contribution demand.
I'd bet a buffalo nickel that Nationstar will want some of that inheritance cash back before final approval.
You may question your own judgement as well and choose to walk away. Advising anyone to pay a $1,000 for a residential appraisal may come back to bite you.
You should pre-qualify your short sales before you accept the listing. The collateral defects and super low NPV details you highlighted on this one screamed run away from it loudly on day one.