Here  is a link to a article by California Assoc, Realtors on Nationstar's newest  way to get bidding going even though you may have accepted offer,  http://www.car.org/newsstand/news/nationstar/

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So far they filed a notice of default on my client even after Calif. law says they can't once a short sale is started. They don't even acknowledge knowing about a law that is over a year old.

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Comment by Lynn Millen on April 2, 2014 at 8:51pm

Nationstar is horrible with communicating and following through.  They just foreclosed on a property we have been working on and it could have been avoided.  I am so over them.  And their auction.com is a joke.  Never again.

Comment by Renee Ciufo, SFR, CNE on February 7, 2014 at 2:09pm

Brian McFedries - Great comment and information and letter.  I think many agent misunderstandings regarding the NationStar process could be clarified if they only went to the lender site and read the details instead of complaining. Afterall, we are supposed to get the best price for the lender in a short sale -- and short sales are not really a deal price-wise anymore. Even if their process sucks, those are the instructions to follow to get it done for your client -- yes, some SS are much more work and frustration -- just do it or don't do short sales. 

Comment by Brian McFedries on February 7, 2014 at 12:28pm

The homeowner's bill of rights in Ca deals more with loan modification than short sales. If you are in an active loan mod review then the foreclosure process stops. In a short sale the servicer can still file the NOD. 

When I run into a Nationstar file I send this letter to all parties to explain the process.  Hopefully this helps

To: All Parties involved in this short Sale Transaction
Fr: First Choice Solutions
Re: Nationstar & Auction.com Market Validation Program


NationStar’s Market Validation Program is incorporated into the short sale platform which requires most of its properties to be listed on auction.com before a short sale is finalized. Not all loans are moved into the Auction.com platform. Ex; to date I believe Fannie and possibly FHA files are excluded. I believe there is a pilot program in place for Freddie Mac files. C.A.R. has been in contact with the California Bureau of Real Estate (BRE) about NationStar’s platform, and the BRE has informed C.A.R. that the program does not violate any laws. Nationstar will continue to use auction.com as a value verification system on many of its short sales. Real estate agents who list short sale properties from NationStar will list the properties on the MLS just as they would with any other short sale. Through this program, once the listing receives an accepted offer, NationStar informs the agent that the property will be posted on auction.com for three weeks, as a means to verify that the loan’s investor has received potentially the best price. During the auction, the original offer will remain valid as long as the buyer,along with the buyer’s agent have registered with NationStar and auction.com. The listing agent for the property may be able to assist with the registration process. Auction.com tends to list the starting bid lower than the amount offered by the original buyer to encourage bidders. Agents working with clients on these transactions should inform their clients of this practice. Once the property is listed on auction.com, other bids also will be considered. If a bid comes in higher than the original offer, the original buyer will lose the property unless he or she places a higher bid on auction.com. Although auction.com charges a 5 percent buyer fee to the highest bidder, the original buyer is exempt from this fee, if the buyer is registered as the initially accepted offer from the seller. * Even if the original buyer has the highest offer, it does not mean that after the Auction process Nationstar will not counter the offer and ask for a higher offer. A downside to Auction.com is the ability to accept bids from FHA and VA buyers. Those programs do not allow for the 5% premium to be added. If the original offer is FHA or VA would be ok because they are not subject to the 5%.

Foreclose process will be suspended while the property is in the “market validation program.” However, the foreclosure date will be suspended until the property is sold in an approved sale or otherwise removed from the program. * Agent still needs to fight for postponements in my experience. 


NationStar has not changed anything stated in the MLS with regards to agent commissions, unless it does not meet the requirements of the loan investor. However, in some case the agent can earn an additional 1/2%.
How we are handling second or third liens, Judgments, HOA past dues etc? Typically when we handle any short sale, where we believe not all liens will be covered; we ask the buyer to contribute above the offer price. We will try to always structure the purchase agreement in away to satisfy all liens. With NationStar/Auction.com this will be handled in a similar fashion. Based on the amount of the liens to be covered, we can usually expect a
50%-60% demand letter.


Many of the agents I work with have asked me about the possibility of trying to “OPT OUT” of the Market Validation program? My response has typically been that it is not worth the headache and really does not benefit the seller. Also agents have asked how is the program legal in Ca since there is already a signed contract in place. I am not a lawyer, but I believe the CA Short Sale Advisory covers this issue under
(Buyer Considerations) “Generally, Sellers also have the right to continue to give offers to their
lender(s) even if they have a contract with an existing buyer.”


In conclusion this letter’s main intent is to inform all parties of how the short sale process will take effect. It is not designed to agree or disagree with the short sale platform NationStar chooses to undertake.

Comment by Lisa Jones on February 7, 2014 at 12:05pm

I have one with Nationstar right now. Under contract around $170,000 and they put it on Auction.com starting bid at $40,000. What a waste of time!! Buyers from all over the country called about it the home and once they found out it was pending near my list price, they were not happy. And now that the auction period is over, they put us in the back of the line again for negotiation. What a colossal waste of everyone's time. They call it a Valuation Test. Why don't they just say they don't the think the agents are doing a good job at getting the best offer? Ridiculous.......

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