Nationstar / Auction.com
What's your story? Is your client being forced into Auction.com?
Replies to This Discussion
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Permalink Reply by J on
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Rikki,
I'm also the buyer in the same situation, though we've been waiting on this home for over a year, and then last week Nationstar drops this bomb on the selling agent. And of course he doesn't want to ruffle any feathers, his seller just wants the house sold and therefore he hasn't pushed back or anything. We've tried to convince him to simply push back a little and he just won't.
Anyway, I'd be interested to know what you or anyone else has been told about the Auction.scum procedure. We have received so much conflicting information.
1. We were told by a SS negotiator that our agent sometimes uses, that a very trusted friend of his works for Auction.scum and said that if we're outbid then we would lose the house. This is because if we were to re-negotiate like in scenario 1 above, Auction.scum wouldn't get their 5%, after they have given Nationstar the "higher offer". So he strongly advised that if we want the house then we need to bid and win, if we're outbid.
2. Our agent found another case in a different area here in CA that is very similar to ours and she called the Agent and discussed what they were dealing with. The other agent said that she was told by Nationstar that we could participate in bidding if we wanted, but it wasn't a necessity. If someone bids higher than our current offer then we could just re-negotiate with Nationstar and match the higher offer (if we so choose).
3. The selling agent on our property told us something similar to 2 above though not nearly as much detail. He didn't say that Nationstar "told him" anything really. And he also didn't say that we'd be able to re-negotiate because Nationstar told him, he said that since the Seller still legally owns the house and picks which offer they want to go with, and since they want us to get the house, we could write a higher offer and re-submit it to Nationstar. Though we've been hearing so much in regards to NS threats that we'd be worried that even if the seller could pick the offer, NS would threaten to foreclose if they didn't chose the Auction offer. Though at this point we'd be willing to pay the 5% to Auction.scum because we want this home.
I'd be interested to know what you or anyone else here has been told.
Thank you
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J- I feel your pain...wow, over a year you have waited and now this? At this point has Auction.com listed the SS home yet? Did the sellers sign the Nationstar paperwork and agree to list on Auction.com. I know some LA have had success with opting out of Auction.com, but the LA on the home we are in contract with, has not had any such luck yet. In the past week I have seen so many updates on blogs regarding this fiasco....
http://www.thomasheimann.com/2013/03/21/nationstarscheme/
As for what our options are....
1. We can wait to see what happens on Auction.com. If a bidder, bids higher than our current offer, we then have the option to counter, but have been told that we will have to pay an additional fee of 5% to auction.com.
2. If the home is NOT sold at Auction.com, then the home must be re-listed again for a 2nd attempt and as long as our contract is still higher than any bid, then at that time our offer will be sent to the investor for approval.
Have you received an approval from NS yet?
There is more information under Nationstar group as well.
Please keep us updated on any new developments.
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Rikki,
Thanks so much for your reply... I feel like we all should have some sort of "Resistance" meeting in some abandoned warehouse and wear shirts that say "Fight the Power" or something, haha. I think we need Neo or Lisbeth.
The home temporarily listed yesterday and was then removed for some reason. As far as we know it seems that the sellers did indeed sign the paperwork and agree to list the home. This has dragged on so long for them that when NS told them it would be over in 3 weeks (which could also be a lie) they saw an end in sight and just took the bait. Honestly, I can't blame them, though I would have appreciated if they fought back a little.
Anyhow, in 1. you said "[you'd] have the option to counter", but would that also mean "match" the high bid? That is, were you told that you'd have to counter higher or would be allowed to match it?
Don't worry, I'll be keeping you all updated. This is a nightmare. Though, as it seems like this will only get worse in the future, we'd like to get out of the housing market and just buy this home!
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I had one a couple months ago put into Auction.com. Auction.com advertised the price incorrect, adverstised we would have open houses, when none were schedule and then when we scheduled the Open House, they didn't advertise. They also listed the property as cash only, and when I ask why, they stated that financing couldn't be gotten for the home. The third party company handling the Short Sale for Bank of America had encouraged the Seller to do the Auction. It was a HAFA file and the Seller would be losing their HAFA benefit by the time Auction.com got through screwing up the file and then released back to us. Bank of America said they were not responsible. That was the wrong answer for me. By the time I got through threating everyone with the fact the HAFA file was federally related, I managed to get the file released from Auction.com. The house sold 1 week later at a higher price, conventional financing.
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you are so right Lorna. We have a duty to fight for our clients. Not to just complain...
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You guys need to be looking at Commerical Bad Faith the damages are punitive I believe
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J- I would have to check to see if we could "match" the bid...Our agent told us that we would have the option to "out bid" the bidder, but then we are subject to pay the 5% premium. No one has told us that we can finance the 5% into the loan. I called and asked Auction.com that question and they told me they were unsure of NS policy and I would have to check with them.
I wonder why yours was listed and then removed?
I am hoping with all of this attention, maybe NS will rethink forcing this onto the sellers?
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Rikki,
Not sure why it was taken down but it was relisted again and the auction date has been pushed back.
Our agent called NS today and she was told that if our offer is beat, we have to start bidding in the auction. NS also told her that our seller could still opt out if they want to, it's not too late as the home hasn't really gone anywhere yet. Unfortunately the seller is trusting NS that this will all be over and our offer will be approved (or they'll have another offer) once the auction ends. They listed this home at the beginning of last year. The seller just wants this to end and we don't blame them, though I still don't necessarily believe it will end when NS says. They told the seller last week that it would all take about 3 weeks, and then we would have an approval. Well, they've already added another week and pushed off the auction, so who knows what they'll do next.
I wish we could convince the seller to opt out, but it doesn't look like that's going to happen. And it looks like we may have to bid after all.
What's going on with your property? When is it supposed to be finished? Please update whenever you can with more info, when you have it.
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J- I wanted to give you an update. We closed last week on our short sale with NS. We contacted NS, got prequal through them and in about 2 days, we had an update that said they were working on the approval from the investor which took about 7 business days. After we received the investor approval, we elected to use NS for their financing, NS also paid our closing costs. Loan terms and closing costs were a little less than I was originally quoted by my lender. From the time we received investor approval we closed the loan in 2 1/2 weeks. It was so fast. I have to say, the NS did a great job on our loan. We waited about 5 months for an approval, but in the end it all worked out for us. I am not sure if using NS to do your loan with help your current offer, but I was at the point, that anything couldn't hurt and it worked out for us.....hope everything works out for you. Good Luck!
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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Rikki,
Congrats on closing your transaction. I am not surprised in the least that things went smoothly once you worked with NS on your loan. When they get ALL the business, they move heaven and earth to close it as fast as possible.
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Thanks Thom. I wish I didn't have to play the game, but in the end it all worked out for us. I just thought I would share my story, maybe there is another buyer that may be willing to do what we did. Best part is we got the home we waited 6 months for at the price we offered and our closing costs paid.
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Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on
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Seems to me that is tortuous interference with a contract, by taking action to cause an existing contract to be terminated. See below from http://elsterlaw.com/contract-business-interference/
Interference with Business Contracts/Expectancy
Missouri case law has established situations where an individual or business can be liable for interfering with contractual or business relationships. The civil tort of tortious interference with business expectancy requires a few elements: there must be a (1) valid existing contract or business expectancy; (2) the defendant has knowledge of the existing contract or business expectancy; (3) a breach of contract is induced or caused by the defendant’s intentional interference; (4) there is no justification for the breach; and (5) there are ascertainable damages from the breach. Nazeri v. Missouri Valley College, 860 S.W.2d 303 (Mo.1993).
For the first element, there generally needs to be an existing contractual relationship because in our market economy the law encourages prospective business competition. For the second, the defendant has to have specific knowledge of the business/contract relationship, and, despite this knowledge, still acts intentionally to disrupt and breach the relationship.
Perhaps the most crucial thing to note is that for business expectancy the expectancy cannot be one that is merely subjective (i.e., a hope). Rather, it must be an objective, reasonable expectancy.
This lawsuit is not one that is easily established. Missouri law, and the law of just about every other State, promotes business activity and the creation of new business relationships. Accordingly, to make a submissible case, the elements have to be clear. It’s okay to have good-faith competition between businesses, but it’s quite another to intentionally disrupt a business relationship for the purposes of breaching a contract/business expectancy.Because this cause of action is founded in case precedent, much of the answers and intricacies of this tort are only discovered after a judicious study of court opinions.
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