Brand Name Misleads the Consumer
Don’t be misled by the name of the company. Nationstar does not own the property and auction.com is not auctioning off a property that went through the foreclosure process. This misnomer has been and continues to be the biggest hurdle when working on any transaction processed through Auction.com. For most consumers, the term “auction” implies a foreclosure sale or a sheriff sale—something that may occur on the courthouse steps.
Buyers and even short sale sellers with their properties listed on Auction.com are often confused about what happens when a property is listed on the site, because it is not a traditional auction. The highest bidder doesn’t necessarily win the property. In the case of the short sales on the site, the seller and Nationstar Mortgage have ultimate decision power with respect to the winning bid.
Nationstar Mortgage Short Sales with Auction.com
The short sale process with respect to Auction.com is very unique and even little bit disjointed. A real estate agent lists a property, obtains an offer, and submits the paperwork (including the fully executed purchase contract) to Nationstar. Nationstar then requires the property to be listed on the Auction.com website, and the bidding on this property is now open to the public.
Many agents complain that this process completely ignores the existing purchase contract between buyer and seller. Given the fact that the seller (not the bank) is the rightful owner until the property, it is the seller who should determine the best purchase offer on the property. The existing contract that has already been submitted directly to Nationstar Mortgage should not be ignored.