How can I get rid of Auction.com
I have a short sale in progress it started out with Bank of America and half way through the short sale process it was transferred to Nationstar. The buyer and seller are under contract and in escrow subject to short sale approval. So far so good all is normal as normal as a short sale can be other than the set back of time having to start over now with Nationstar. Now out of the blue Nationstar brings in Auction.com to market the home. This home is already under contract and I don't need to market this home.Auction.com is calling my seller and trying their best to insert themselfs into this deal. Their not welcomed or needed. Nationstar is not moving this file forward.They want Auction.com to market this home on their Auction.com site.This home is already in escrow with a valid buyer paying market value.To top this off Nationstar did get me the task to perform the BPO.Yes they want me to do the BPO on my own listing.What up here. I need to get Auction.com out of the transaction. Any input or suggestions??
I had a very similar situation. I just kept telling them that the property was under contract. I also had several discussions with the negotiator and somehow, she was able to stop the Auction.Com process.
Forcing the Auction.Com process on properties already in contract is going to haunt Nationstar for years to come- it is bad, if not illegal, business.
I had this happen to me with Bank Of America.. My seller had to call and deny them the right. She stated she would not sell with Auction.com and only would cooperate with B of A. She also called Auction.com and said the same. Auction.com had her home under contract, $89,000 under what I was able to procure. In the end it closed with B of A. You have to be persistent. They do not want a foreclosure if you can show that that's the road they will travel, you may get this back quickly. Auctio.com can pay you as the listing agent, if you want that, please let them know. They offered it to me, but we had an offer so much higher it was not in the best interest of my client to go with one of their buyers. Hope this helps.
Seller needs to write a letter that simply says they are OPTING OUT of the process to have their property ( which is not owned by Nationstar) listed with Auction.com . They should also state that they are in violation of a couple of California laws. Auction.com is also licensed with the Dept of real Estate so they are also in violation by soliciting a listing when it is already under contract with another broker. Also mentioned that the State Attorney General, Kamala Harris, is reviewing many complaints against Nationstar
My first course of action would be to contact your State Association of Realtors, then DRE & NAR and report them for soliciting your sellers as a brokerage marketing your listing without your sellers consent. The banks are not a party to the transaction in California except to accept the short sale, counter the sale price or decline and of course they still try to change already executed contracts. I am sure you could get some good advice from DRE & NAR on what to do. Of course Nationstar can just decline the offer, foreclose and move forward with their marketing and potential buyer. It's a slippery slope but you have a ready willing and able buyer under contract...keep reminding them of that fact and ask for a supervisor to remove Auction.com from the transaction. Escalate file until you get someone who can do that for you. Good Luck
Laura, their loophole out of this is that they are NOT Realtors or members of NAR, and do not have to comply with the "no solicitation" guidelines in the Realtor code of ethics. These practices really aren't a violation of the DRE that I'm aware of.
Extremely savvy and shady at the same time.
Mike, You are incorrect ..they are a licensed real estate corporation in California
They may be licensed but they are NOT "REALTORS" - therefore No Code of Ethics to follow.
Please see attached blog article and comment.
you are correct. this is a perfect example of why every broker needs a lawyer that will jump in and lob out clear threat letters.
this is a clear case of contract interference and the lender and the auction company need to be sanctioned. if the assn of realtors will not get behind you on this easy kill they are useless.
nationstar CANNOT market the property until they own it.
I had a horrible & similar situtaion with Nationstar / Auction.com (Look over onto www.ShortSaleSuperstars.com under Auction.com / Nationstar).
Here's the deal - The Seller / Owner has a Note that is serviced by Nationstar NOT by Auction.com. The Seller / Owner can refuse to speak with Auction.com and, Nationstar has no legal right to insert Auction.com into your transaction. Also, unless you have the Owner's / Borrower's written authorization to speak with Auction.com you cannot speak with them - just like if the Owner / Borrower did not authorize you to speak with Nationstar or BofA you could not.....
If the current Buyer prevails with Auction.com in the transaction, they will pay an additional 5% of the selling price to Auction.com as a "Buyer Premium" - so if they thought they were paying $400,000 - they will now be paying $420,000 !
In my transaction, we have an awesome offer, the buyer even came up to the amount Nationstar wanted - then they tried to insert Auction.com but neither the Seller / Owner nor I would speak with Auction.com . Nationstar stopped communicating with everyone and simply foreclosed. (This was in CA). Now, 6 months after foreclsoure, the property is under contract at $30K less than the signed offer we originally had pre-approved by Nationstar.
I NO LONGER accept any Nationstar properties as short sales.
BTW, Auction.com is also known as REDC and Red Crown Realty. They have licensed Salespeople and Brokers throughout the country.
Good luck, I do not see a good ending.
PS. they only pay 1% commission to the selling side, you cannot use your own Real Estate Signs, you have to use Auction.com signs and they tell you when and how long you must hold open houses......
Good luck!! I have worked with Nationstar for 6 years handling a lot of their REOs. Their organization has gone thru so many changes over the last year and a half. I have two REOs right now that could have sold months ago thru normal marketing channels at higher prices than market value, but for some reason Nationstar is all over putting every property they have on Auction.com. I have written VPs at Nationstar along with the Asset Managers and it all goes to death ears. The way I see it with Nationstar is they must have a reason or a personal incentive because all they are doing is losing money and making the Realtors work for nothing. I am sure that sooner or later they will wake up and just as fast as they jumped into Auction.com they will jump back out.