Negotiated and CLOSED! Auburn MA short sale with Nationstar!
We are on a Keith Shaw roll this month. I was nervous to work on this Massachusetts Short Sale because it was a Nationstar serviced. I’m sure if you follow any of my blogs you can see the history I’ve had negotiating short sales with Nationstar. Nationstar now uses a site called Auction.com to sell their short sales. When Nationstar forces a homeowner to list their short sale, that is already under contract up on auction.com, it breaches several contracts. One – it breaches the listing agreement with the list agent. 2 – it breaches the contract the seller has with the buyer. 3 – It breaches the contract that the seller has with me. I find this practice shocking.
To this day I still cannot believe that someone in governments has not stopped in to stop this. The reason this is bad is because this practice opens the homeowner up two lawsuits everywhere. Interference in contracts is a big deal. I know that Nationstar has already been sued by one of their investors. One Nationstar investor found out that Nationstar was putting property up on auction.com they were sued. I know it also as a fact that Ocwen is having the same issues with HUBZU. Ocwen puts their short sales up on HUBZU and is now being investigated by several different government entities.
The worst part about this practice is the fact that it causes many delays. At minimum it will delay a short sale 30 days, but I’ve dealt with ot
her people who said it delayed their short sales for months. This works out great for the servicer because they are paid by an investor for servicing a loan, and when that loan closes they don’t get paid anymore.
Thankfully after we did our research of this loan we knew that it was Freddie Mac backed. I’ve had many short sales with Freddie Mac and know they’re very decent to deal with. I also know that Freddie, Fannie, and FHA do not force their home owners to list there already under agreement short sales on Auction.com. Immediately, Nationstar told us this sale would have to go up on Auction.com. We immediately pushed back and said “no” this would cause a lot of duress on the homeowner because she was severely sick and had a hard time moving around. Showings would be a huge inconvenience to her. Nationstar pushed back saying they didn’t care so we escalated to Freddie Mac to explain the situation and within 24 hours had approval of the short sale. Now had we been forced to put it up on auction.com we would have wasted another month or two trying for auction.com to get an offer. They’re rationale is that a entices the best offer. But if an agent has done their job in a servicer has done their job with an appraisal.
Thankfully with a great team including Keith shaw, Grugnale Law, and of course the Short Sale Mitigation team we were able to get this done!