Nationstar / Auction.com

What's your story?  Is your client being forced into Auction.com?

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Permalink Reply by Kevin - Greenville, SC on March 28, 2013 at 12:36pm

If you have any questions regarding Auction.com and our participation please feel free to contact Nationstar at 855-761-4143. We will be more than happy to discuss and go into further details.

Permalink Reply by Kevin - Greenville, SC on March 28, 2013 at 12:38pm

So they put your Client's home up for Auction when your Seller said they didn't want to participate?

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 28, 2013 at 2:29pm

And there you have it......

Permalink Reply by Karen Curtis on March 29, 2013 at 3:57am

I had sent in the paper work and then found out it might not be mandatory so I sent a message in Equator that my seller did not want to participate and that was BEFORE it was on auction.com.  I had tried to get answers from Nationstar prior and they would not reply and Auction.com had told me it was mandatory.  I am still waiting to find out what to do, I will call the above number.  I left an email and a message and have not heard back from another referral.  Thank you Kevin for the  number.

Permalink Reply by Bill Sloss on March 28, 2013 at 10:55am

Youll have to make the determination yourselves but you are apparently being offered money to breach what may be your ethical and legal duties to your clients. Id be on the phone to local District Attorneys and the State Attorney General for that determination ASAP.

Im sure you all know what that could be construed as.

Noun 1. commercial bribery - bribery of a purchasing agent in order to induce the agent to enter into a transaction
bribery, graft - the practice of offering something (usually money) in order to gain an illicit advantage
Black’s law dictionary defines commercial bribery as the corrupt dealing with the agents or employees of prospective buyers in order to secure an advantage over business competitors.  In other words, commercial bribery is a bribery of a purchasing agent to induce the agent to enter into a transaction.
 

Commercial bribery is a form of bribery which involves corrupt dealing with the agents or employees of potential buyers to secure an advantage over business competitors. It is a form of corruption which does not necessarily involve government personnel or facilities.

One common type of commercial bribery is the kickback. For example, a seller of goods or services from "Company A" who offers the purchasing manager of "Company B" a payment to his own account to help him secure a contract for Company B's continued business is engaging in a form of commercial bribery.
Permalink Reply by Rikki on March 28, 2013 at 1:25pm

Thom, does this apply to homes that have an offer on them?

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 28, 2013 at 2:31pm

The one I'm working on does NOT have an offer on it.

Permalink Reply by Kathleen Jamal on March 28, 2013 at 10:16am

Please see Freddie Mac's Bulletins (Section 65.40).  Fannie Mae has the exact same requirements.

Permalink Reply by Christina Henley on March 28, 2013 at 4:05pm
Mine had an executed contract submitted thru equator prior to the auction.com announcement. The buyer was informed of what was happening and immediately withdrew his offer/contract. Property listed at 1.349
Permalink Reply by Thom Colby CA Brkr 888-391-5245 on April 3, 2013 at 11:10am

Folks,  Your help is needed. 

There is an effort underway to try to get a handle on just how many Short Sales are being interrupted by Nationstar's insertion of Auction.com into the process.  There is also an effort to valiudate if Natioinstar is actually "requiring" the use of Auction.com .  If Nationstar is putting the requirement into writing it would be good to share that info here - without your client's specific info. 

Thanks in advance....

 

 

Permalink Reply by J on April 3, 2013 at 6:29pm

Just an update for those interested...

We are the buyer on a home and have been waiting for over a year. We started as backup and then became primary after the loan was sold to another bank last summer.

A few weeks ago they asked us to revise our HUD to match their bottom line.Then 2 weeks ago our agent received a call from the SA explaining that NS wanted the seller to list on Auction.com etc. and for reasons I won't go into here the seller feels they need to do this because they need this property sold and over with. We have tried to get them to opt out but they just feel that this will end the process etc. Trust me when I tell you they have good reason to want this over with.

We have verified multiple times from many different people, other agents in similar situations, NS, and from Auction.com that if our offer is outbid then we are required to bid on Auction.com.

Well I just found out some more wonderful news after reading over the Online Terms and Conditions at Auction.com. It seems that for Online Reserve Auctions (which ours is) this can happen:

Reserve Auction. This is a reserve auction, unless otherwise noted in a specific Property listing, and all Properties have a reserve price (“Reserve Price”), meaning the Seller of each Property can accept or reject any bid and has also established an unpublished, minimum selling price. The starting bid is not the Reserve Price. Except where prohibited by law, during a live bidding event (online or otherwise) the Auctioneer may open bidding on any Property by placing a bid on behalf of the Seller and may further bid on behalf of the Seller up to the amount of the Reserve Price by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders. If no bidders meet the Reserve Price, the Seller is under no obligation to sell the Property (see “Subject to Confirmation” section below). The Seller may withdraw a Property at any time prior to the announcement of the completion of the sale by the Auctioneer. Auctioneer is not acting as an agent for any Bidder in any capacity, and is acting exclusively as the Seller’s agent as an auctioneer.

(My emphasis in bold underline)

Please tell me this is "prohibited by law" in CA?

So, essentially we will probably be paying Auction.com their 5%. This is because we're pretty sure that our offer is a bit below the current property value, and that Auction.com's appraisal is also probably above our offer. We also verified with Auction.com that the reserve price is 'somehow' based on the current offer and the Appraisal. Thus, if the Auctioneer can bid up to the reserve and therefore beat our offer, we will be forced to bid and pay Auction.com their 5%.

This ... is ... disgusting.

I won't go into the details here but trust me when I tell you that I want to walk away and never deal with these scum again - but unfortunately it's not that simple. My wife and I have been looking for over a year and simply love this area, the home and everything about it. Everything else that we've found is either too expensive, too small or just not in a neighborhood that comes close to any place we'd want to live. My wife and I are also expecting our first child in late August and don't have any more time to waste.

Permalink Reply by Bryant Tutas on April 4, 2013 at 12:54am

Sounds like the new MO for Nationstar and auction.com  Thanks for sharing your nightmare. I'm speaking with Bloomberg news again today about this situation and your story gives us just a tad more ammunition.

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