california civil code

Nationstar Bank Short Sale and Down Syndrome

Nationstar short saleI woke up this morning with a Nationstar short sale and Down Syndrome whirling around in my brain. I don’t know why. See, this is what being a Sacramento real estate agent does to you. I didn’t dream about Shameless — that Showtime series about my family when I was a kid. No, seriously, my father was not nearly as sweet nor endearing as William H. Macy’s character. Yet, I couldn’t help but wonder if that baby on Shameless with the Down Syndrome really has Down Syndrome. I don’t mean on the show; I mean in real life. Because that would be really tacky. The NDSS would be all over that.

Unless the baby could talk. Then, it might be a way to better understand those born with Down Syndrome, we could develop empathy and this would be considered acceptable. Except the kid can’t talk. But if the baby could talk, I bet he could speak more clearly and distinctly than a negotiator at Nationstar.

A kid at Nationstar told us yesterday that the bank will no longer let sellers pay for a natural hazard disclosure when selling as a short sale. They don’t want to see that crummy little $99 fee on the HUD anymore. Yes, they realize it is state law that a seller must give a copy of the natural hazard disclosure to the buyer. Yes, they realize it is also against state law for the seller to pay for a natural hazard disclosure out of the seller’s pocket because all fees must be paid through the short sale. California Civil Code 580e says the seller is not allowed to pay for anything.

So, on the one hand, you’ve got Section 1103 in the California Civil Code that says the natural hazard disclosure must be delivered to the buyer as part of the sale. On the other hand, the Civil Code says sellers can’t be required to contribute or the bank is breaking the law. And then you’ve got a group of managers at Nationstar Bank deciding it won’t allow the seller to pay this fee from the proceeds of sale.

I realize every $99 adds up. Hey, I sell real estate in Sacramento and not in Newport Beach or I’d be retired by now. But, really, Nationstar. My TC sent me a copy of the email from the negotiator who told us to read the California Civil Code again, although it still says the same thing it said the last time we read it. Nationstar might be making her go sit in the corner for lunch, but that’s not our M-O.

Here is part of that email: “There is nothing to check with my managers as they are the ones who told us to no longer accept the NHD on the HUD. Guidelines change all the time, you cannot expect things to always stay the same. Malyssa”

All over ninety-nine bucks.

Today, there are more than 400,000 individuals people with Down Syndrome living in the United States. I hope none of those people ever have to subject themselves to Nationstar.

 

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