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.
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......
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?