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Nationstar Auctions for Short Sales

By Elizabeth Weintraub Sacramento Broker

Real Estate Agent with Elizabeth Anne Weintraub, Broker DRE #00697006

February 16, 2015 04:15 AM

Nationstar has switched auction companies, and I read somewhere that they own the new auction company, but I have not verified that rumor, and I don't really care. The auction process is still the same. Nationstar picks some goofy low auction price and buyers are supposed to place bids over a certain time period. If you're under contract with an existing buyer, that buyer is allowed to register for the auction site and place a bid as well, with one little exception, the original buyer, if the winning bidder, does not have to pay the Auction company a 5% premium; whereas other successful bidders pay a premium above and beyond.

It's an interesting system, and it's also possible for an original buyer to win the auction by registering on the site and placing a bid for the same amount as the accepted offer. If the original buyer registers, you might get approval in a few days after the bidding closes. If the original buyer does not register and therefore does not participate, it reverts to a regular short sale after the auction and basically starts from the beginning.

You can read more about this in my personal blog today about the Story of an Elk Grove Short Sale with Nationstar Auction.

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Chris Ann Cleland

Long and Foster Real Estate - Gainesville, VA

Associate Broker, Bristow, VA

I was so steamed at Ocwen for doing this auction nonsense on a listing we had a buyer for. I reported them to CFPB and the requirement to auction was gone. Straight short sale review, no auction.

Feb 16, 2015 08:54 AM

James Dray

Fathom Realty - Bentonville, AR

Morning Elizabeth sound like you eared you pay on this one.

Feb 16, 2015 07:19 PM

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

Elizabeth, I can't vent enough about the methods that Nationstar uses to sell it's properties. They need to be locked up as they act unethically and dishonestly.

Feb 16, 2015 08:24 PM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Chris Ann Cleland I have not found Ocwen to insist on auctions but then I generally do a HAFA with them.

James Dray I earn my pay on every single transaction I close. I have yet to close a transaction and say to myself, well, that was so easy I don't deserve to get paid. Just not happening in this market. Everything is a challenge.

Feb 17, 2015 01:16 AM

Gabe Sanders I think both NAR and CAR has been hammering on Nationstar's practices which is probably how they got rid of the shill bidding.

Feb 17, 2015 01:17 AM

Gabe Sanders

Stuart, FL

Chuck Willman

Chuck Willman - Alpine, UT

NewHouseUtah.com

So much of what happens now is of the head-scratching variety. I do a great deal of work in these areas. With each new twist I just have to say, "OK. So these are your new rules?" and then run with it. It makes little sense but so be it.

Feb 25, 2015 12:53 AM

Inna Ivchenko

Barcode Properties - Encino, CA

Realtor® • GRI • HAFA • PSC Calabasas CA

I'm going through one right now.

The auction had happened and a very low bid won. Even we had a full price offer, the agent who represented buyer did not help her clients to submit it via homesearch.com. So, the offer was simply ignored.

After 5 months of jumping through hoops with Nationstar, 2nd and HOA, our clients( sellers) might see the light at the end of this tunnel.

Mar 05, 2015 03:34 PM

Inna Ivchenko Your buyer's offer will prevail, Inna, not the low offer through the auction. The buyer is not required to participate in the auction and only a higher bid could take the property away from your buyer. They don't "ignore" the buyer if the buyer's offer is highest. So, something is probably wrong with your negotiator.

Mar 05, 2015 11:15 PM

Nationstar Auctions for Short Sales

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