U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 04-19-2010, 07:58 PM
 
25 posts, read 86,875 times
Reputation: 10

Advertisements

* I posted this in the Real Estate Forum, but I'm hoping perhaps the professionals here would be able to give me insider responses? *

Hi all,

So I've been dealing with a complicated situation as a first-time home buyer involved in a short sale. I know short sales aren't supposed to be easy, but with the series of issues that's been going on, I think I'm being manipulated by the agents and everyone else involved in this deal.

Could someone please tell me if it's common practice for a seller's agent to basically force a buyer to use a specific mortgage banker, and threaten that the seller will pull out of the deal / not extend the deadline to obtain a mortgage if the buyer does not use that mortgage banker? Is the agent getting a commission by doing so? Are RE agents even allowed to do that???

If anyone can shed any light on this, on what I should do and how to deal with this situation, I would really really appreciate it!

THANKS!!!!!
Quick reply to this message

 
Old 04-19-2010, 08:11 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,554,091 times
Reputation: 2179
We usually read both forums, so double posting is really not necessary. See my response in the RE Forum.
Quick reply to this message
 
Old 04-19-2010, 09:00 PM
 
Location: Northwestern VA
982 posts, read 3,022,402 times
Reputation: 559
The reason the seller wants you to prequalify with the lender of their choice is so that they will have an idea if you have what it takes to get to the closing table and to have a back up lender in place in case yours flakes out.

I totally understand your frustration, and know that this is not what you do for a living . I feel like a broken record because I say this in every other post I make: buyers end up frustrated because their agent didn't adequately prepare them for the transaction. You should be upset with YOUR agent, NOT the seller or his agent.

Put yourself in the seller's shoes. When you are on the foreclosure block do you think you have a lot of time to putz around with offers that come in, or do you think you have to make a good decision in a short amount of time? Knowing that you're not working with a lot of time, do you think it's prudent to take a chance on a lender you know nothing about or have buyers qualify with someone you know and trust?

If your loan officer screws up and can't close on time, which happens more often than you probably care to believe, the bank that has to give approval on the sale will not be OK with that. Do you know what will happen? They will tell you to take a hike and the house you're trying to buy will go to foreclosure. You get your EMD back and have the opportunity to buy something else. The seller ends up with a foreclosure on their credit and will have an extremely difficult time finding anywhere else to live because of the foreclosure.

I make sure every buyer I work with understands the consequences of going through with the purchase of a short sale. I let my clients know that they are holding someone's financial life in their hands and if they're not serious of buying, we don't need to write on that listing. I explain things the seller may ask for and why, I let my clients know how things are supposed to go and what our plan of action will be if anything doesn't go as we expect.

Quote:
Originally Posted by lisamisa View Post
* I posted this in the Real Estate Forum, but I'm hoping perhaps the professionals here would be able to give me insider responses? *

Hi all,

So I've been dealing with a complicated situation as a first-time home buyer involved in a short sale. I know short sales aren't supposed to be easy, but with the series of issues that's been going on, I think I'm being manipulated by the agents and everyone else involved in this deal.

Could someone please tell me if it's common practice for a seller's agent to basically force a buyer to use a specific mortgage banker, and threaten that the seller will pull out of the deal / not extend the deadline to obtain a mortgage if the buyer does not use that mortgage banker? Is the agent getting a commission by doing so? Are RE agents even allowed to do that???

If anyone can shed any light on this, on what I should do and how to deal with this situation, I would really really appreciate it!

THANKS!!!!!
Quick reply to this message
 
Old 04-19-2010, 10:05 PM
 
Location: Columbia, SC
8,844 posts, read 17,437,561 times
Reputation: 6189
Pre-qualify with, or close with?
Quick reply to this message
 
Old 04-19-2010, 11:01 PM
 
Location: Salem, OR
13,740 posts, read 31,550,338 times
Reputation: 12105
The problem makes more sense in the other thread in the regular real estate thread.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top