Nationstar / Auction.com
What's your story? Is your client being forced into Auction.com?
Replies to This Discussion
-
Permalink Reply by Amelia Keene on
-
I see law suits... big time if they insist on this.....
-
Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on
-
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.
-
Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
-
So, here's a thought........... When we are working on a short sale and discussing the offer etc. with the Nationstar representative and they begin to discuss Auction.com and Real Estate terms, etc., don;t they have to have a RE license in the State where the property is? At that point they are no longer discussing the DEBT, it becomes a Real property discussion. Maybe we need to ask for the rep's License #................
-
Permalink Reply by Jerry A Cook on
-
Thom- you are right on the money! Listing agents on short sales have to set expectations with both the property owners (banks 'borrower') and loan servicers 'representative'.
Buyers have a contract with seller to buy their house, this has NOTHING to do with getting a demand to pay off a debt.
The seller has a contract with the bank to pay money on a loan, That contract has no language allowing the bank to require a future party to comply with any of the sellers contract terms, when buying the house.
The bank (loan servicer) does not have to issue the 'demand letter' to allow the short sale to be approved, they can just muddle around and get paid to do that!
The entity that hold the actual note does NOT have to agree to be forced into selling the note short. In an appreciating market they can 'take property back' and ride the wave of price increases that have started in some parts of the country. (Which is the right thing to do for the note holder)
Now we have the parameters set on each parties duties.
When I represent the seller, I spell this out. Then I 'always' refer to the seller as 'Your Borrower' when dealing with any bank/loan servicer representative. I relay that I need to know if the 'entity that holds the note' will approve our settlement offer (short sale) and I have a few lines regarding 'hardship, neighborhood values' and condition of home.
I acknowledge that this is a 'process' and the buyers are still engaged.
I do not respond to any of the other BS that is requested and we too have a notice of non-responsibility that we send to banks representative that clearly states we are NOT responsible for any 'debt collection' processes that they are engaged in, nor the accurance of any documentation that their 'borrower' submits to the representative.
To date, 'Of the files I accept to work on' I have had 1 go to foreclosure, but my seller became difficult and uncooperative, not the bank's representative nor the buyer! And 15 close escrow and I have 3 in the pipe and 1 of those will not go anywhere due to the sellers being uncooperative in submitting financials.
Now heres the trick part that we have overlooked. The standard sale market is heating up. When no one buys the properties at 'auction.com' and no one looks at short sales as a home buying option, due to the number of standard sales. Short sales will go away, and so will Auction.com's business model!
My back ground is 'foreclosure guarantee's.' From 1986 through 1995 my organization processed over 100,000 files in socal. in 1997, (900 plus a month!) after I left for real estate sales in 1997, the organization processed 300 total transactions in 1 year.
The foreclosure cycle was broken, interest rates were coming down, sales were picking up and foreclosures were heading to levels never seen before (record LOW LEVELS!)!
Short sales are good for business, but I tell them what I need, and then I move on to the next deal and let them deal with their investor. The rest of what they are trying to do is just 'busy work.' And I close to many transactions to be bothered with their politics.
I believe the servicers are working to break this cycle of 'short sales' and are making it so difficult that the buyer will move onto something else. The trump card for the seller is 'live rent free' or rent the house out an make some money! Or give it to a charity for a group home! Or send a key to the banks representative with a 'good luck' note attached!
This is an insane period in Real Estate, but I see it beginning to come to an end.
Much success in 2013, and beyond!
-
Permalink Reply by Kevin - Greenville, SC on
-
Thom,
I've heard of some Agent's that have pushed back and Nationstar backed down.
-
Permalink Reply by Rikki on
-
Kevin, The listing agent tried and he was told that the Sellers do not have a choice, sign the letter or go to foreclosure.....Not sure if he just isn't aggressive enough? He says he is trying....We will wait and see.
-
Permalink Reply by Karen Warren on
-
I am not an attorney but I was married to one. Sounds like duress to me.
-
Permalink Reply by Mike Rizzo on
-
Call me an old country bumpkin, but if the seller has no choice, why is he being asked to sign anything. Another point, we as realtors cannot sell homes twice or engage in an activity that you promote such an outcome. This has yet to happen to me, but I will not participate in the second sale of the property and report the request from the servicer to NAR and my real estate commissioner, to cover my behind-side. I would also copy my state's Attorney General on my refusal to participate in something that I'm prohibited from doing.
-
Permalink Reply by jennifer mullen on
-
We're in the same boat. My clients wrote an offer in December. Nationstar continues to ask for documents and addendums but put the house on Auction.com at the same time. Then they pulled it from the auction after a day and said they will put it back on in a week. It's absolutely criminal! They didn't even bother to counter my clients first. What on earth are they thinking?
-
-
Some insightful comments. Theres a term in the lawsuit business called the courthouse steps. Basically that means one side goes through all the nonsense and then settles on the steps before the trial. Call it a tool or a bluff thats your choice. Also works in criminal court when after the defense hears the prosecutions case they enter a plea.
You need to become familiar with the term economic duress and pick a state and county or a Federal Court where you can fast track a case and make the case. Thats the only way youll get their collective attention. You need some case law and some cases fast or youre in for a bumpy road. A minority buyer/seller wouldnt hurt your case if you want to play that card.
Usually if you feel something is wrong it is trick is most people dont know how to prove it. Get it fast tracked in front of the right judge. The longer you wait the worse it will get. But be careful and make sure you understand all the angles .
-
-
I submitted an executed contract and all necessary docs to equator. I was told by a nationstar rep it was going to take 4-6 months to complete. Auction.com sent all their advertising which the seller and I ignored. When I was contacted by auction.com on friday i let them know seller was declining the service because we already had an executed contract. I was then told I must have misunserstood. Nationstar REQUIRES this and it is the next step in their process of the short sale! I argued my case. She said she would be happy To get the nationstar rep on the phone to explain this requirement again. I proceeded to ask how long it would take and explain the home was near foreclosure and nationstar indicated they preferred a short sale. Rep stated if they participated in auction.com nationstar would respond about a week after auction.com. At this time seller had summary judgement hearing on Tuesday. They signed it.
-
-
You might want to explain that in a little more detail.
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons