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
* 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!!!!!
|
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.
