I know I was. For months I battled with Nationstar trying to avoid the Auction.com "Verification of Offer" process. If you are not aware of the issue you can read up on it here.
Anyway.......I fought the good fight and I lost :) So I decided to give auction.com a try and see if I could figure it out.
The program has changed. The no longer take a portion or our commission. They honor the commission in the listing agreement including the split. This assumes the lender/investor doesn't make a change.
Auction.com is paid from the 5% buyer premium.
- From Nationstar: The online auction process is paid for by a buyer’s premium, not by you and not from your listing agent’s commission.
If you already have a buyer prior to the auction process then the buyer should register on the auction.com and monitor the auction. If the bidding goes above the current contract hen the buyer can increase their "bid". If the existing buyer wins the auction they do not have to pay the 5% buyer premium. The deal basically gets kicked back to the listing agent.
You can also request to get auction.com involved right up front (prior to selling the property). The property will through the auction process as normally and you would still get full commission. The MLS co-broke would be honored for any represented buyers. Unrepresented buyers will come back to you and you get the full commission.
- From Nationstar: Nationstar offers two short sale programs:
1. Market Validation Program (where an initial short sale offer has been received) Nationstar requires an expanded marketing campaign followed by an online auction of the property to maximize market interest and prices for a property. Nationstar will use the auction and marketing services of Auction.com [(operating and licensed as Real Estate Disposition Corporation in Arizona)/ (operating and licensed as Real Estate Disposition Corporation in Massachusetts)/ (operating and licensed as REDC DE, LLC in Pennsylvania) (“Auction.com”)] to assist with this process.
2. Nationstar Listing Assistance Program (where no short sale offers have been received)
Nationstar will use the auction and marketing services of Auction.com to assist in generating market interest in the property through an expanded marketing program followed by an online auction that may generate an offer that could result in an approved short sale offer.
As for the borrower, they get full Waiver of Deficiency if they participate in the process. They may be REQUIRED to if they want to do a short sale.
I found the process to be very smooth and plan to do many more. May be a new niche since many agents will avoid them. I smell opportunity. If you are a Florida agent I'd be happy to handle Nationstar/Auction.com short sales for you.
My main concerns (disclosure and commission structure) were sorted out with the new auction program. Just be sure to disclose, disclose and then disclose again.
I hope this helps.--
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Our MLS prohibits it. You cannot participate in the XOME program if your short sale is already under contract or face possible fines from MLS. You cannot remove the under active listing either without facing penalty. It is against MLS rules in the two states I work in. I would encourage every agent to contact their local MLS to make sure advertising a third party auction site is not prohibited because it is in our state.