Buying REO from Mortgage company (loan, interest rate, pre-approved, foreclosure)

[Rifkinn]

I am buying an REO from Countrywide and am getting my loan through Rural Development (already approved). Through their selling agent, CW had accepted my offer and I, my agent and RD were waiting for them to send signed papers back so RD can proceed.
CW is now saying that I need to fill out a loan application through them. Their agent is saying that I can even do this online at their site.
Is this right? Or even legal?
It is really bothering me that I have already been pre-approved for a loan through RD and CW is claiming I need to do this.

[Charlottean]

This is the norm with Country Wide properties for sale.

Every listing that I have ever seen has that exact disclaimer in the remarks somewhere.

It basically says any potential buyer or purchaser must have a pre-qualification done through countrywide. It does not mean you have to use them.

Didn't you sign a bunch of addendums that were added to your contract? Normally there is a piece in the addenda about this.

[Rifkinn]

"Proof of funds must accompany all offers." was the only thing related to financing in the agent remarks section.
The only papers they have wanted me to sign, and I understand why, are the "AS IS" stuff and the mold release form (fire dept, was rebuilt and remodeled, house inspection will confirm or not on that work, if I get that far)

[renriq02]

Countrywide is 'notorious' of stealing customers.

they will make it very hard for your current lender.....and take you away!

Originally Posted by Rifkinn

"Proof of funds must accompany all offers." was the only thing related to financing in the agent remarks section.
The only papers they have wanted me to sign, and I understand why, are the "AS IS" stuff and the mold release form (fire dept, was rebuilt and remodeled, house inspection will confirm or not on that work, if I get that far)

[Rifkinn]

well, they aren't stealing this one, lol. I'm getting a 502 direct loan from Rural Development with a great interest rate for 33 yrs. I don't think they will ever top it, lol

[coolricks]

I wanted to buy a foreclosure home at the sheriff auction, they told me that I need it to have the full amount in cash in order to participate in the auction, I have been pre-aproved for a loan and I require to have from the seller pay the closing cost. Do I really have to have CASH?? can my loan be used to buy the house?

[Rifkinn]

Well Charlottean, you were right.
My agent and I both missed the information in their paperwork that they had something about me putting in an application with them (not that I have to use it though). She was real sorry about it and offered to pay my earnest money out of her pocket if I still wanted to back out. I don't because this house is really the only thing I have seen in this area that fits my budget and Rd's requirements (hoping it also passes the house inspections as well)

[Charlottean]

Yep, pretty standard stuff with them.

Pretty straight forward deals with them so don't worry too much. They have sold a few you know !