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Old 02-19-2018, 08:05 AM
K L K L started this thread
 
4 posts, read 1,996 times
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Is my lender allowed to disclose the following to the seller's attorney? (I am the buyer)

"...I (seller's attorney) spoke with the lender after our conversation and they stated that you or the buyer requested the extension until March X. They told me that best case scenario, they could be ready to close on February X if they received all requested information in a timely fashion."

I believe that the only info my lender is allowed to have shared is the planned extension to March; nothing further. By my lender disclosing the possibility of closing earlier, I lost leverage concerning the closing date, and I feel the extra detail that my lender provided the seller's attorney breached my lender's duty of confidentiality to me.

Do you agree with my perspective, or was the lender okay to disclose the above info to the seller's attorney?
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Old 02-19-2018, 08:18 AM
 
Location: USA
135 posts, read 44,139 times
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huh? what 'leverage'?? what would be damaged/cost ???
sounds quite immaterial unless you can demonstrate (quantify) a specific injury.
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Old 02-19-2018, 08:20 AM
 
939 posts, read 407,986 times
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Well what sort of leverage did you want to gain with the earlier closing being secret? It generally follows that if closing can proceed earlier it does. If the seller is speedy why wouldn’t an earlier close potentially be on the table? You can always decline to schedule it earlier and it changes nothing.

I guess I’m not really seeing the issue - that’s very standard in all the deals I’ve done that we shoot for a reasonable closing and hope the documents and lender come through earlier. The close with the title company is up for negotiation - usually at or before the contract date, if both parties agree. I guess potentially your agent could have filled your hand but to what end? What kind of leverage were you thinking you’d have by hiding a possibly early close? That’s not confidential information to suggest that the close date isn’t ironclad if things proceed smoothly.
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Old 02-19-2018, 08:43 AM
 
Location: Columbia, SC
8,857 posts, read 17,461,540 times
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It depends on your contract. Our contract authorizes (not requires) the lender to answer questions for the sellers or sellers reps. Not personal info like exact credit score or SSN numbers but certainly information relevant to the transaction. What you shared would and should be shared per our contract.

Just because your lender could be ready to close earlier doesn't mean you have to. Not sure what you think you lost here because I'm not seeing it. In fact if I'm the seller that's good news, it means I'm happier with you as my buyer knowing that this won't be coming down to the wire.

You should check with your agent and/or read your contract.
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Old 02-19-2018, 08:52 AM
 
Location: Rochester, WA
3,840 posts, read 2,066,396 times
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Not sure... We may need more background because I'm guessing the motive for the extension is vital. Is the situation that you are requesting an extension, and saying it is financing related... but it's really not... it's for some other reason? And the lender blew your alibi, by saying, "no, I'm not requesting the time... I could close earlier!" Was the lender told about the full reason for the extension? Was what the lender said true?

I might give one tip.... Don't choose lightly to go to war with your lender two weeks before closing.
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Old 02-19-2018, 09:09 AM
 
Location: Raleigh NC
7,781 posts, read 6,144,732 times
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I don't know why your lender would be having that conversation anyway. The extension should have been agreed-to before the lender even knew it was occurring - unless the lender requested it for whatever reason.

I'm sure the state you're in matters. In NC, Sellers rarely have their own attorneys. But my lender wouldn't be having conversations with the listing agent unless my buyer authorized it.

We certainly need more details
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Old 02-19-2018, 09:55 AM
 
Location: Columbia SC
7,978 posts, read 6,739,855 times
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Quote:
Originally Posted by Diana Holbrook View Post
Not sure... We may need more background because I'm guessing the motive for the extension is vital. Is the situation that you are requesting an extension, and saying it is financing related... but it's really not... it's for some other reason? And the lender blew your alibi, by saying, "no, I'm not requesting the time... I could close earlier!" Was the lender told about the full reason for the extension? Was what the lender said true?

I might give one tip.... Don't choose lightly to go to war with your lender two weeks before closing.
I think you hit the nail on the head. He wants to delay and blame it on the lender.
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Old 02-19-2018, 11:36 AM
 
939 posts, read 407,986 times
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Quote:
Originally Posted by johngolf View Post
I think you hit the nail on the head. He wants to delay and blame it on the lender.
Thatís kind of skeevy.
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Old 02-19-2018, 04:38 PM
 
Location: Salem, OR
13,750 posts, read 31,601,217 times
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When buyers ask for extensions and I am the listing agent, I call to confirm it will take them that length of time to close. Whether or not it is a breach depends on what kind of release you signed within your contract. Here the buyer releases the lender to disclose non-confidential information that relates to the loan and the terms of the contract.

I'm confused why you are asking for an extension to the contract and then upset it might not be as long as you wanted? Extensions are meant for buyers that agree to close as quickly as possible but had some sort of glitch along the way. They are not for buyers to drag out a real estate transaction for "leverage."
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Old 02-19-2018, 06:18 PM
 
Location: Cary, NC
31,648 posts, read 55,401,531 times
Reputation: 30198
OP, you cannot expect any party to the transaction to lie for you, or to support a bluff cloaked in a lie.
That would be unacceptable.

Now, several years ago, I had a lender share my buyers' appraisal value with the listing agent without permission.
That was poor form.
I wouldn't recommend that lender at all anymore, just for that.
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