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Old 10-26-2010, 11:35 AM
 
4 posts, read 12,254 times
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I made an offer through my realitor for a co-op. I filled out the paperwork and the listing agent wants to see my IRS tax returns for the past 2 years, last 3 paychecks, etc. This is very personal information and I don't understand why the seller's agent needs this before i even give the offer. They said it's because it's a co-op. I understand that the board needs this info but why does the seller's agent need this? She said it's to see if i pre-qualify but my agent already knows that I do.

Last edited by Katie20; 10-26-2010 at 11:37 AM.. Reason: changed title because it was unclear.
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Old 10-26-2010, 12:00 PM
 
Location: Randolph, NJ
4,073 posts, read 8,322,086 times
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Agree with you, seems like an unusual and pushy request. What does your realtor say?
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Old 10-26-2010, 12:09 PM
 
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My agent said the seller's agent needs to know if I pre-qualify and the seller will never see my information. But my agent knows that I do. I think they want to see what my financial status is to counter-offer my offer.
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Old 10-26-2010, 12:30 PM
 
Location: NJ
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No chance in hell I would give that information before agreeing to a price. A pre-qual is a different story. Most sellers won't even entertain an offer without a pre qual for good reasons.
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Old 10-26-2010, 12:49 PM
 
2,535 posts, read 6,213,298 times
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From my experience this is actually pretty common( In nyc real estate anyway). Since Co-Op boards are such a royal P-I-T-A. The sellers agent doesn't want to waste anyone's time with an unqualified applicant, especially because another offer could come along at any time. You will have to turn over all of this information to the Seller's agent anyway, they are responsible for putting the application package together for the co-op board(co-op boards wil not take your word for it, they are stricter than your mortgage broker). I would push to get an accepted offer before turning over everything since this is by far the prevailing SOP for co-op sales.

Good luck! some coop boards are all about the numbers and as long as your tax info, salary info and bank info match up you are good to go. Other's can turn you down because they don't like your penmanship.
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Old 10-26-2010, 01:08 PM
 
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I would push to get an accepted offer before turning over everything since this is by far the prevailing SOP for co-op sales.


What is "SOP"? Also, when you say to wait to send everything, do you literally mean everything or do you mean send 1 tax return as opposed to 2, or 1 paycheck stub as opposed to 2...

Last edited by Katie20; 10-26-2010 at 01:14 PM.. Reason: did not use the quote reply correctly
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Old 10-26-2010, 02:05 PM
 
2,535 posts, read 6,213,298 times
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Quote:
Originally Posted by Katie20 View Post
I would push to get an accepted offer before turning over everything since this is by far the prevailing SOP for co-op sales.


What is "SOP"? Also, when you say to wait to send everything, do you literally mean everything or do you mean send 1 tax return as opposed to 2, or 1 paycheck stub as opposed to 2...
SOP is standard operating procedure. The co-op board dictates to the seller's agent what they need. Typically it's 1 copy of 2-3 years worth of tax returns, most current bank statement( saving and checking), most current stock or investment statement, current pay stub or 2 most current, pre-approval letter from mortgage broker, they may even want a letter of employment from your employer stating title, income with bonus and length of employment. This is the same info the bank will ask for once you have an accepted offer. Get ready to turn over a lot of private information in the coming months! Wait until he bank starts asking about why your father or mother wrote you a check for $1,000 last December.

You can absolutely take the stand that you aren't sending anything until you have an accepted offer. The seller's agent is by law required to present ANY offer that is in writing to the seller. That said, the offer can be rejected for any reason(except protected reasons under Fair Housing Act)including on the grounds that you didn't prove that you would meet the board requirements.
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Old 10-26-2010, 02:09 PM
 
Location: earth?
7,288 posts, read 12,104,910 times
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It is more usual for the listing agent to require an actual pre-qualification from a lender, which would include providing that info to your lender. How can you bid on a home without being pre-approved for a loan, unless you are paying all cash, in which case you should provide the source of the cash with your account numbers blacked out with your offer. You can do the same with your SS number, if you decide to provide your tax returns, and I don't know if I would do that. Just get pre-approved by a lender, which you should have done already anyway.
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Old 10-26-2010, 02:27 PM
 
Location: In the woods
3,315 posts, read 9,528,563 times
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Do you have a letter/statement from your lender? If you qualify, they will provide this for you. It is basically 1-page with the lender's letterhead and will have how much you qualify for (the maximum amt), the interest rate, your realtor's name, address, etc. Ask your lender if you don't have one and show that instead to the Listing Agent. It proves that you pre-qualify and for what amount.

I can't imagine why a listing agent would want all that info. That's confidential stuff only between your lender and yourself. never heard of this; but then I've never bought a co-op, only houses.

The only other thing I can think of is, in the event there's a competing bid, the Seller may go with the Buyer who is less of a risk. Hence, if you put in an offer which is matched by someone else, the Seller could go with the one who has a longer job history, more cash savings, etc. I think this happens quite a bit with short sales and foreclosures.

BTW, if you do need to submit such documents, black out your SSN, any bank account #s, etc.: they shouldn't be allowed to see that info
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Old 10-26-2010, 02:31 PM
 
Location: nj
68 posts, read 210,445 times
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because it's a co-op and the buyer will have to go through the board before completing purchase. as stated above, the selling agent wants to make sure there aren't any red flags that will prevent the sale from going through.

depending on the co-op, there can be minimum % down payment on a place and maximum % of monthly income for expenses, among other rules.
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