Owcen and Nationstar sending short sales to HUBZU and Auction.com

Owcen and Nationstar sending short sales to HUBZU and Auction.com

So has it happened to you yet?  You list a short sale, market it, do CMA’s, take picts, and finally put the home under contract.  Yes it’s a great day to submit a short sale.  You send your package into Nationstar and wait while the processor weeds through the paperwork, and 1 month turns to two, and finally on the third month of waiting for them to approve the sale, they notify you that must now have the seller sign an agreement that the sale will be marketed on Auction.com.  Wait, didn’t I just do that?  Didn’t I just market it for four months, finally get a buyer, sign a contract, and submit and wait another 3 months?  So now this sale has gone on for seven months, with a fully executed failedshortsalecontract, for the seller’s lender to tell us we need to submit it to Auction.com?

Well, this isn’t new news.  This has been going on since the first quarter of the year, and now Ocwen has jumped on the bandwagon by forcing sellers to join, HUBZU.com

The liability of doing this all around is HUGE.  There are issues for the seller, lender, agent and I have heard the argument that the sale is subject to third party approval, however, I think it’s high time that NAR takes a stand.  The SALE is subject to third party approval.  Not the marketing.  The marketing is for the agents, NOT for the lender.  Why does Nationstar or Ocwen feel that their 3rd party companies do a better job at marketing and finding a higher offer than the one the agent has presented?  I think if you do a quick search on the internet regarding Nationstar and Auction.com, you will see HUNDREDS of posts from agents losing qualified higher buyers, only to have the Auction.com sale fail.  Also, what happened to STREAMLINING short sales?

HAFA guidelines stipulates the servicers must respond to a homeowners paperwork within 30 days and render a decision if they qualify…how does waiting 3 months to throw a sale that’s already under contract help?

What liability does this put onto the seller or agent, when a buyer already under contract, gets wind of the sale being put on Auction.com?  Their already executed contract angryis now being “interfered” upon.

What about MLS rules?  When a property goes under contract in MLS, it is not red flagged to take back up offers.  Does an agent risk violating those rules?

What about the listing agent contract?  The agent outlines the way they intend to market the property.  Not in one area does the listing agent agree to market it on Hubzu or Auction.com

What about Military Vets?  They will be excluded from short sales as there is a 5% buyer premium.  One of my peers has already posted a very informational video on this http://www.youtube.com/watch?v=nXVvTBhZWJ8

Both Nationstar and Ocwen have already been sued over this practice and I can just see the lawsuits following.

As far as our homeowners going through this process?  Well even though the paperwork alludes to the fact it’s an OPTION, it’s not.  The response we got was either they do it this way, or they’ll be reviewed for a modification or a Deed in Lieu of Foreclosure, which, hey, let’s have all the homeowners OPT for this method.  The lenders and investors will get NOTHING when they take back the property as opposed to fair market value.

I will keep you posted to let you know what transpires.

 

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