Forum

NationStar requiring Buyer to apply for pre-qual with NationStar.

Posted by Kristy Hamilton on June 22, 2011 at 4:59pm in Short Sale Discussions
I have a short sale file that is at the end of negotiations with NationStar, in Equator.  Now, they sent an application for the Buyer to complete for loan pre-qual with NationStar.  We already have, not only a pre-qual letter, but an approval letter from a different mortgage company.  The Buyers don't feel comfortable doing this.  I relayed this info to NationStar and they told me that they would deny the short sale without it.  Can you believe this?!  I guess that I should have know that this one was going too smoothly.  I then uploaded and sent the two pre-approval letters for their review.  NationStar said that the Buyers don't have to obtain the actual mortgage through them, but do need to complete the doc.  Anyone experienced the same?  I have another NationStar file that I just noticed has the same form in the package.  I haven't gotten that far with this one, yet.

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

Email me when people reply –
Follow

Replies

  • 31cg1fw8yxswn March 4, 2013 at 9:53am

    See Anti-Trust laws:

    In U.S. antitrust law, the Sherman Act addresses single-firm conduct by providing a remedy against "[e]very person who shall monopolize, or attempt to monopolize...any part of the trade or commerce among the several States."[3] This prohibition does not condemn monopoly per se but only monopoly that has been acquired or maintained through prohibited conduct.

    While the prohibition against multi-firm anticompetitive goes against agreements "in restraint of trade", it is not enough to show that an agreement in some technical way restrains trade. Under U.S. law, at least, the scope of the prohibition is limited to those agreements where the restraint of trade is unreasonable:

    Every agreement concerning trade, every regulation of trade, restrains. To bind, to restrain, is of their very essence. The true test of legality is whether the restraint imposed is such as merely regulates and perhaps thereby promotes competition or whether it is such as may suppress or even destroy competition.
    There are SEVERAL other issues.
    1. Does the owner (vs. servicer) of the note have such a written agreement with the servicer to reauire this?
    2. Will the information ACTUALLY be used to create a letter of approval with a loan at COMPETITIVE rates?
    3. Will ANY of the information in the application be used to make any assessment of the acceptance of the short sale agreement (let's say that the bank determines the buyer can afford 20K more)? If so then it is probably illegal and unethical.
    I would suggest that RATHER than fill out an application through equator or other systems..and deliver to the negotiation (which in itself may be illegal and unethical), to instead have one or two preapprovals, even through the bank that is servicing.  Deliver ONLY the letter of approval to the negotiator and or equator.  Use ONLY a thousand or two over the contract and closing costs as approved. 
    THis would resolve the percieved and actual conflict of interest.
    Certainly a letter from the BUYER stating that he is approved already and has CHOSEN his own lender and that he is NOT interested in takin ga loan from the holder or servicer would legally end any suggestion that it is required.
     Send the letter first with the approval. If the bank or servicer demands an application or closes the file, then file a complaint with the FBI and other federal and state agencies, also with your state and federal congressmen and senators. Immediatly reopen the file as new and send in again. Repeat EVERY time they close the file illegally.
  • Paola Martinsen February 27, 2012 at 5:24am

    Does anyone have a copy of the application. I would like to add that to the MLS listing. And if theres any additional forms the buyer or seller are required to sign I would greatly appreciate a copy. paola@lux-group.net or please upload here for everyone :)

    • Janine Margaret Nielsen > Paola Martinsen February 27, 2012 at 5:35am

      Nationstar Application is attached.

      You may have buyer's decline at the bottom.

       

      Just have them fill out info without SS #'s

      and type or write in at the bottom that they are declining.

      I have had buyers agree to use nationstar and get CC's paid, no appraisal fee and good terms/rates.

      They also are able to close in 30, even though theier LO was in another state. Good communication and service from Nationstar as a SS Lender and Loan.

      Nationstar PQ Application[1].pdf

  • Kevin - Greenville, SC January 20, 2012 at 6:54am

    RESPA Forbids Steering - Even "Just For Prequalification"

    http://www.searchlightcrusade.net/2012/01/respa_forbids_steering_ev...

    • Mark > Kevin - Greenville, SC January 20, 2012 at 11:11am
      Update, a few months later- I did get an approval on this purchase without doing a pre-qual with nations tar. 
      They demanded the pre-qual, I refused, they caved in a few emails layer.
      They did dawdle and drag their feet on the file, but they were doing that anyway
  • Tracy Hatchell November 9, 2011 at 8:18am

    Guess what everyone!!!! I got an approval on my short sale from NATIONSTAR!!! Fought the issue about them not forcing the buyer to apply through them. Told them they are in violation by doing so. They asked for the underwriters conditional approval from the buyer's lender showing what stipulations had to bee met. Gave it to them. Gave them updated bank statements. Got a message today stating that they are issuing the approval with NO deficiency judgement and no note at closing!!!!!!! Just stick to your guns and do what is right!!!! We cannot allow these banks to bully our sellers nor our buyers!!! Good luck everyone!!!!! Another one bites the dust!!

  • Michelle Theis October 30, 2011 at 12:12pm

    I had the same situation.  The Buyers had their own lender and did not want to fill out the application, which brought us to a stale mate.  Buyers eventually had to fill it out and we got an approval.  Buyers stayed with their own lender.  I believe this is standard practice for them.  It is just annoying that they don't give you the heads up sooner.  It's smart if you are listing a short sale that is with Nationstar, to have that application in the MLS.  Now we all know!

  • Melanie Carney October 26, 2011 at 10:41am

    yes, I've experienced the same strongarm tactics. They did actually close out a file when our buyer refused to cooperate but I was able to have it reopened once she agreed. Unfortunately there isn't a way around it from what I can tell, they want to make sure that the buyer is bonafide and you're not wasting their time or committing fraud. I would just notify my buyers upfront and perhaps put a notice in the listing remarks. FYI The buyer doesn't have to go with their financing in the end.

  • Janine Margaret Nielsen October 25, 2011 at 10:30am

    Here is how you get around the Nationstar requirement of getting the buyer to cross-qualify-

    You have the buyer's lender submit a DU approval(full committment to lend) and you send with the PQ letter.

    You also have them partially fill out the Nationstar application(names, addresses, birthdates, and last 4 off ss#s)

    at the bottom have them sign but fill in that  "We respectfully decline this application".

    As you can see from my negotitors response below it is perfectly acceptable.

    

    The last thing is the buyer prequal. What you uploaded looks like a full commitment to lend. If it is I will not need the buyer to get a prequal thru nationstar. If it's not we want the buyer to be prequaled thru Nationstar to make sure we are working with qualified buyers. Please advise.

    • Melanie Carney > Janine Margaret Nielsen October 26, 2011 at 10:43am

      I tried this tactic too but did not have the same results :(

This reply was deleted.
********************************** like buttons ************************