Winning Bidder in Loan Auction Sues Nationstar for Refusing Sale

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If a mortgage company undervalues its own product by $150 Million dollars how sure would you be about doing business with them? For that amount of money you would think they would double check their work. Please read the article below and let me know what you think.

The FHA Condos Approval Company, Inc.

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Truman Capital Advisors and U.S. Bank filed suit against Nationstar Mortgage after the servicer decided not to complete the sale and transfer of 534 mortgage loans Truman Capital bid on through Auction.com.

According to the complaint, which was filed Monday in New York State Supreme Court, Truman Advisors bought the non-performing loans for an agreed price of $150 million.

A few days after Nationstar notified Truman Capital that it was the winning bidder, the complaint states the Lewisville-based servicer, acting through its agent.

Auction.com, notified Truman Advisors that it “refused to complete the sale and transfer” of the loans covered by the winning bids.

The complaint alleges that Nationstar’s decision was “based principally, if not solely, on its belated realization that the reserve prices it had set for, and at which it had agreed to sell … was significantly lower than their fair market value.”

Truman Capital alleges Nationstar’s failure caused the company to suffer at least $35 million in damages.

However, a complaint filed by Nationstar against Truman Advisors last week states that under Auction.com terms, “[n]o obligation to sell shall be binding on Seller unless and until a written contract of sale or loan sale agreement is signed and delivered by Seller. Seller reserves the right to rescind any oral acceptance of a winning bid prior to the execution and delivery of an executed contract of sale or loan sale agreement for any reason.”

To read the complete article – please use the link below.

Winning Bidder in Loan

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