Is Your Short Seller Being Forced To Use Services They Don't Want?

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

orlando short sale specialist

 

Hi folks. Well here we are again with a new issue in the short sale world. It seems like every week it’s something new. This one started in early March.

Nationstar Mortgage is now requiring their short sellers to place their properties on Auction.com. EVEN properties that are already under a current valid and binding contract.

That’s right. Nationstar is requiring sellers that are already under contract to auction their property on Auction.com. I guess Nationstar and Auction.com could not care less if the seller is already bound by a legal contract. Supposedly it's to insure the highest and best price and the verify the buyer.

         
  • Nationstar has teamed with Auction.com to help you advertise, market, and sell this home in the next 60 days. We will be contacting you about this unique opportunity within the next 7 days and encourage you to take advantage of the chance to leverage the approach of Auction.com in assisting you in the marketing and sale of this property. BENEFITS OF THE PROGRAM: COMMISSION=> Your agent commission is not affected. Auction.com’s services are paid independently of your commission, so you have nothing to lose. SPEED=> The entire Auction Campaign will take less than 60 days in most cases! MARKETING=>Auction.com aggressively advertises and markets properties in its Auction Campaign AT NO COST TO YOU. Auction.com utilizes not only traditional methods, but also online and direct mail, leveraging a database of over 4 million real estate investors and home buyers. Discuss this innovative opportunity to participate in the Auction Campaign with your client today. 

There are so many issues with this I don’t even know where to start. Here’s one I can think of. I’m sure there are many more.

Tortious Interference: Occurs when a person who is not a party to a contract says or does something to cause one of the parties to breach the contract.

 

I just cancelled a listing with customers of mine becuase they were not allowed to opt out of using Auction.com. When trying to opt out of using Auction.com the only response we could get from Nationstar was......

         
  • Please contact the Auction.com Short Sale division at 855-761-4143 to discuss your options. I am not able to move forward until this process has been completed. Thanks

And it sucks because the sellers are long time customers of mine. I've had them connect with an attorney to see if they can get opted out. If they can't opt out they will be forced to hire an agent they have no desire to use. Or they will be foreclosed on.

 

Their property sits on top of a sink hole and is insurable. These sellers are being placed in a very risky position by a company they didn't hire and have no desire to use to sell their property.

 

So what can we do? Thoughts?

 

Related articles:

 

Nationstar/Auction.com  (Great discussion with 200+ comments)

 

Auction.com requirment. Is this even legal?





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 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Topic:
Home Selling
Location:
Florida Polk County Bartow
Tags:
short sales
nationstar mortgage
auctioncom

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Show All Comments
Rainmaker
1,939,015
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

You made the right decision. 

Apr 05, 2013 11:23 PM #1
Rainmaker
2,704,514
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Bryant,

I am curious if this is a "big bank" lender going this route and what they (might be/are) getting back from the auction company for this forced requirement(?)

 

Apr 05, 2013 11:27 PM #2
Rainmaker
1,142,035
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Hi Lisa. Nationstar is not a bank. They are a mortgage and servicing company and are not restricted by banking rules and regs. NS is after mortgage business from the folks purchasing through the auction. And I'm sure there are back door agreements that we are not privy too.

Apr 05, 2013 11:41 PM #3
Rainmaker
1,304,395
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

Several have went to third party haven't they like equator. On another BB do you think short sales are about dried up.

Apr 06, 2013 05:12 AM #4
Ambassador
1,877,510
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

What a mess some of these short sales come up as Bryant, reiterating he who has the gold rules.

Apr 06, 2013 05:31 AM #5
Rainmaker
414,502
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

Hi Bryant,

Nationstar stinks.  They are the new one I love to hate.  And, I thought I would never get over Greentree.  Too many reindeer games.  I read that they are being sued by their investors over this auction stuff as well.   And of course, what is next in the world of short sales?  There is too much tinkering and game playing by the servicers right now in short sales.

As for auction.com, I think it stinks.  Most buyers do not want to buy a home in an auction format.  They are actually apt to get less for the property by doing this and limiting the pool of buyers.

Is the underlying loan insured by Fannie Mae?  If so, I would send a complaint there.  Also, does Florida have a department for regulating debt collectors?  Where is Nationstar based?  Does that state have a department?  

Anyway, it sucks for your clients as most certainly all those avenues willl take time and that is what they are short on as well.  You gave them the best advice which is to get an attorney involved.  

Keep us posted on the result.

Apr 06, 2013 09:32 AM #6
Rainmaker
1,142,035
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Thanks guys.

Charles. I think we have several more years of this mess. At least in Florida. I expect many short sales this year. The probelm will be finding agents wiling to work within the constraints the serfvicers are starting to put on us.

Apr 06, 2013 08:34 PM #7
Rainmaker
4,796,627
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I had a relationship with Nationstar many years ago.  I stopped when they started lying to me and using my services for the benefit of other agents.  This doesn't surprise me.

Apr 06, 2013 09:33 PM #8
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Rainmaker
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Bryant Tutas

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