Thom B of A was the first servicer to "get in bed with" Auction.com
since B of A was so huge, it behooved Auction.com to USE them as the 1st servicer to "rollover" and "play" with them....
now, they've "paid off" oops...did I say that??? I mean, "convinced" others to join their rat race, once showing servicers how they can "PROFIT BIG TIME" I mean, benefit..... yeah right...
you DO KNOW gives a "buyer agent" a measly 1% buying side commission and to the listing agent...at least on several B of A files...a measly 2% commission.....but hey, the BUYERS have to pay a whopping 5% PREMIUM on TOP OF THE WINNING BID PRICE....so if buyer purchases a property for $300,000 they REALLY have to pay 5% on TOP of the $300,000 price...so buyer REALLY bought it for $315,000.... so in essence, the BUYER is ACTUALLY PAYING FOR the total commission 1% to buying side, 2% to listing side and I'm guessing the remaining 2% goes either in Auction.com's pockets OR is split 1% each to Auction.com and the other 1% to the servicer that allowed the listing to be on auction.com
including what the servicer gets to make on the sale for Auction.com driving the price UP UP AND UP!!!
Sheyenne, I am a buyer in contract on a Nationstar SS. We are over 5 months into this and after all tasks have been completed and file escalated, the LA comes back to tell us that the Sellers HAVE TO LIST the home with Auction.com for a 24 hour period to see if any better offers are out there. If the Sellers decline, then Nationstar told the Sellers they will let the home go to foreclosure.....How can they do this. we have had a contract for 5 months, we were the highest and best offer and have patently waited all this time. If they want highest and best, then why list on an Auction.com website, that when you go to their FB Page, they talk about how CHEAP their listings are?? Makes no sense. Is there anything we can do?????
And here's a question I do NOT know the answer..... Can a Financed Buyer also finance the additional 5% Premium?
What line is that on the HUD?
What about FHA Buyers who want to put down 3.5%, do they have to bring an additional 5% to closing?
per auction.com 33 pages of instructions it is to be put in the 1300 section on the sellers side
This won't fly on a VA loan. VA will not allow it. No the 5% can not be finanaced. Williams and Williams tried this on a VA and had to eat the 5%. The purchase price is the purchase price and does not included the 5% buyers premium. In addition, since the 5% is not part of the purchase price the MLS sales price is understated.
The 5% premium is added to the purchase price, so actually it is included in the Loan.
On the HUD is listed on the 1300 as a "Buyer Premium to Auction.com"
Yes sir. I'm doing one right now. Took me a week to get the forms I requested for review. I also had the seller sign a indemnity agreement releasing my company from all liability related to the transaction.
Forcing sellers to use auction.com is flat out wrong and has zero benefit to the seller or the lender. It limits the buyer pool and adds another layer of complication to an already complicated transaction.
Kudos to auction.com for selling these servicers and lenders a bag of crap.
It's all revenue driven. These clowns will stop at nothing to derive another nickle at the expense of anyone who is willing to pay it. Sounds like duress to me.
I just had Chase pressure me on a file and I had seller sign letter saying they opted out of Auction.scum and would not use them. Ended discussion.
I am in a similar situatuon with Nationstar and suddenly the property must go into Auction.com. Seller has questions that haven't been answered. How did your deal end?
Hi in my case I wrote to a VP and they waived the auction process even though they stated it was mandatory as nationstar now owns the loan.
Update: I (the buyer) was told that our offer is still in 1st position and we do not have to pay the 5% Auction.com fee. However, if there is a "higher bid" put on the property through the Auction.com website during their 24 hour sale period, the buyer fee of 5% will apply. I do not understand how the terms of our contract can change? Can the Sellers fight this? Can the Sellers do anything at all? I know that BofA offered Auction.com as an option, but it seems Nationstar is saying that the Sellers HAVE to participate or they will force to foreclosure. I was forwarded information where Nationstar is being sued for using the services of Auction.com. I know as a buyer there is nothing we can do.....