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Hi folks. If you handle Short Sales then you are probably aware of the new trend..... Lenders/Servicers partnering with auction companies to "assist" in the selling of the property.

The two partnerships that are causing the most discussion on the web are Nationstar/Auction.com and Ocwen/HubZu.com 

In most cases your seller will NOT be able to opt out of these required auctions. So be prepared to have to deal with this. You can try but in most cases if the borrower doesn't use the auction service the Short Sale will be denied.

My biggest complaint with this has always been the lack of disclosure and the way that they spring the auction requirement on the borrower and the agent at the last minute. In fact Nationstar and Ocwen usually won't even bring it up until AFTER the agent has already found a buyer for the property.

We work the short sale, sometimes for months, submit documents to the lender, find a qualified buyer only to then be presented with this auction requirement. It can be very frustrating. Especially if they now try to reduce the commission to pay the auction company. I offer guaranteed co-brokes on short sales. The lender reducing the commission after the fact can be very problematic.

And of course they have no qualms about throwing the existing purchaser to the curb.

So what can we do?

1. Call the servicer at time of listing and ask them if an auction will be required.
2. If they answer "yes" then see if they will do the auction now instead of waiting for a contract before they "verify the offer" at the auction. Auction.com will do this. I'm not sure about HubZu.
3. If they won't answer the question..escalate. You really need this information upfront.
4. If the auction is required adjust the co-broke in the MLS and provide as much info as you can about the auction process to the buyer side.
5. Full disclosure to all parties is imperative. Prepare a written disclosure and have it signed by all parties.

My guess is that these auction services are going to become more and more prevalent. the bottom line is that the lenders want as much money as they can get for the property. The auctions have always worked for their REOs so it makes sense for them to want to do the same with short sales.

As agents we have to decide whether or not we want to take these types of listings. I had decided to take a pass.

BUT....things change. I now see this as an opportunity for me to create another niche. So...I'm learning their systems and procedures.

If you are a Florida agent or Florida Short Sale Seller and want help with Nationstar/Auction.com or Ocwen/HubZu.......I can help.

****Tutas Towne Realty will list or co-list any of these types of Florida Short Sales anywhere in the State of Florida. 50% referral fee for co-list. Let's talk

Had a FHA short sale close to approval with BOA then BOA filed a claim with FHA so then it went to AMS Servincing so had to start all over again. AMS Servicing ordered BPO which BPO agent stated she did not go over what I had it listed for which is $155,000 but AMS countered back stating investor countered at $169,000. This counter is almost $20,000 higher than market value of the condo unit. I emailed the AMS contact stating this fact but he states it is non negotiable. I emailed him back asking for a variance but have not received a response. I told him under HAFA we can request a variance so please do his job. Still no response. Getting ready to lose the buyer AGAIN. Anyone out here ever had this issue? I have been doing short sale quite successfully for over 9 years now long before the market fell and this is my first to have issues. I have had a 100% close rate for all of my short sales till now. This is just ridiculous. 

Thanks, Tracy Hatchell

Hello SuperStars - does anyone have a good contact at RTR?  RTR 2nd lien holder and they do not want to budge on their demands.. first lien is Fannie and there are two subordinate liens that need to split the $6000... RTR wants $13K . Need to escalate to management.. help!  please