Does anyone have any updates as to where things are at with Nationstar and auction .com Last I heard there was a class action suit brewing against them as they were forcing sellers to market their property on Auction.com after they had a fully executed contract with a buyer. Has anything changed? Does anyone have any input to this?
Get an attorney's advice on whether the seller MUSt sign up with auction.com
"Funny." I had one FHA service released to NStar, twit from HUD said they can do anything, new appraisal, whatever they want. A couple of days later, w/o my calling, got another call from HUD. Apparently, this time from someone with a brain and said she was looking into things. HUD seems to have nimrods and good people, so just a warning to FHA SS's. However, NStar gave us a letter for the homeowner to sign and check whether he would use auction.com or not. Clearly, we chose NOT. My point is that HUD, either directly or due to some rules, doesn't put up with the auction.com forced nonsense. So, NStar doesn't have this as a blanket requirement. That may help you in dealing with these people.
In the past, we've had discussions because of the "buyer must fill out loan app for NStar, oh, maybe not if you complain", etc. Seems NStar pushes things and backs down for people who assert their rights. (I like previous comment about initial loan docs not saying borrower is forced to forgo short sale for auction). I'd also approach the investor and ask why they are forcing the seller to accept lower offers through auction.com with extra closing money given to auction.com when a better buyer has been ignored by their servicing bank. Seems FNMA and Freddie would be asking for some gov't inquiry into why they are forcing less value to come back to taxpayers for auction.com payoffs.
I spoke yesterday to an attorney with Calif Association of Realtors and she stated there is nothing illegal that Nationstar or Auction.com is doing. She stated that the short sale lender has every right to require the seller to use all avenues, including Auction.com to get the highest and best offer in order to provide them an approval for a short sale. The issue I was trying to stress to her is who's E&O insurance is on line. Why are open to potential liability when we are under the direction of Auction.com? Also if the buyer was not made aware of the auction requirement prior to the seller accepting their offer and then has to re-bid through the auction process, they may be required to pay the 5% premium.
I have avoided auction.com, however, people have complained that money goes to auction.com and buyers with higher offers have been bypassed for auction.com lower offers. Maybe it is perfectly legal for a servicer to ask a seller to stand on one foot in the corner while swinging a dead cat over his head, however, I suspect that especially fed HUD and fed bailouts taking taxpayer money are investors asking for fraud inquiries into paying out MORE money and accepting LESS money for investments just to pay off auction.com, etc. Sounds right, no? You stated HIGHER and MORE. That doesn't seem to be the case with complaints I've seen here.
Someone will need to come up with CLEAR evidence where a buyer's higher offer was not accepted and that a lower offer was that benefited Auction.com
The only legal means as a remedy for default is outlined in the seller's original mortgage docs. I doubt if auction.com is listed in that particular section of the mortgage docs.
yes i get it food idea looking into it and will let you know what happens
I have been battling this as well, Nstar has absolutely refused to move forward even though we already have junior approval and the seller has even called in to opt out and was refused.
Escalate to the President's office. Google the main number and call.
Ok I had a run in with NationStar; please listen carefully I see at least ten agents losing their hard earned monies. If everyone of you chips in $ 100.00 to $200.00 for retainer, you can hire legal consular on behalf of all your sellers and or buyers, I almost guarantee you that when NationStar sees the possible Class A Action law suit that they will agree to COE and give extra monies to your sellers to boot, but make sure the attorney give them an ultimatum to wrap it up or go to court and have attorney email president of company the court documents about to be file. I would'nt even play with these guys I will sue everyone of then the company as a whole the president of it personally, and everyone involved in the case at nationstar personal, we also need to let NAR know of this and force them to do something what the hell we pay our dues for.
P.S. Sue everyone that's what I did and got paid it was a different bank of course. We are not ants they can step on we are second larges association in the world, we are Realtors highly trained and regulated to do what is right.
GOD BLESS AMERICAN and ALL REALTORS.
Totally agree but waiting on NAR to do something is like waiting on the pot to boil. (apologies to all my NAR friends)
We are all for a class action suit,we have several clients who stand their ground and we wait.. Here in FL we can stop FC sales as much as we want, meantime the homeowner can stay in their home for free. And with over 100 shortsales on our hands we don't care when these one close, it's up to Nationstar.
We also have a voice mail from auction.com stating that the short sale will be denied if we don't use auction.com, pretty sure that's illegal and good evidence! Auction.com calls on behalf of Nationstar, they have access to confidential info on clients via equator, don't know if all this is legal but we will gladly fork out $1,000 per client to the attorney who takes it to class action.
Why do we pay our board fees? If our boards don't do anything about it? Where are our Washington lobbyists on this???