I was on the process of buying a short sale property. I signed a contract with the seller to purchase the property after a long negotiation with Nationstar to accept the second bank. I offered to increase my offer to come up with the term of the second bank. Nationstar accepted it.end of the deal right? No...
Once the second bank is agreed with the payment Nationstar ,then said the property have to be auctioned at auction.com to check if they get a higher price. I was told that I can register at auction.com and bid so I can bid higher If the price gets higher than my offer.
I was so upset , I know short sale will take too long and will be in the mercy of the bank at the end but I never imagined they will advertise and sale at the auction while I am under contract (This I believe is a breach of contract).
At the auction.com the property auctioned and the bid closed at about $12,000 more than my offer. I asked to counter offer for $2,500 more . Which by the way is denied because they "don't accept offers after the auction".
The scam is to get 5% buyers premium which goes to the auction.com and nationstar. In my case it is about $21,000. this money may not go to the investors who own the mortgage. I wish some body do some thing to this manipulators. I am now back to zero where I started. I will get my earnest money back today. I missed a chance to buy other properties because of this scam they always make you think that you are closer to get the propertie. Why wait this long if their intention is to go to auction.com. They wasted every bodies time, real state agents, brokers, Banks etc. Very very sad.