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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!
No one can force you to use a specific mortgage banker/broker. It is illegal for an RE agent to take a referral fee from a lender.
It is not unusal to ask you to pre-qualify with the seller's lender so that they have more confidence in your ability to get a loan. However, you can still get the loan from any lender you chose. Do you have your own agent representing you, or are you only working with the listing agent?
No one can force you to use a specific mortgage banker/broker. It is illegal for an RE agent to take a referral fee from a lender.
It is not unusal to ask you to pre-qualify with the seller's lender so that they have more confidence in your ability to get a loan. However, you can still get the loan from any lender you chose. Do you have your own agent representing you, or are you only working with the listing agent?
I'm already in contract, done with attorney review, did the inspection, still waiting for seller's bank to come back to us with an answer.
I've been working with a local bank to secure a mortgage. However, the problem is the seller's agent has been insisting to my RE agent AND banker that I use the banker to get a mortgage.
Are seller agents allowed to threaten with pulling out of the deal or not extending the commitment deadline if I don't use the banker they want me to? What can I do as a buyer?
If it was me, I'd probably just walk away. You can report the agent to the appropriate channels but do you really want all the stress associated with that?
So what if their banker gives you a loan with a considerably higher interest rate and closing cost? Would you just take it anyway?
Talk to your agent, he/she should be working for you and upholding your rights as a buyer since he/she represents you and nobody else.
I'm already in contract, done with attorney review, did the inspection, still waiting for seller's bank to come back to us with an answer.
I've been working with a local bank to secure a mortgage. However, the problem is the seller's agent has been insisting to my RE agent AND banker that I use the banker to get a mortgage.
Are seller agents allowed to threaten with pulling out of the deal or not extending the commitment deadline if I don't use the banker they want me to? What can I do as a buyer?
LisaMisa - The Listing Realtor is not a 'principal' to your contract, and, therefor, has no part or authority to 'demand', threaten or even request anything!
What does the seller say about it? Usually they just want to get out of the mortgage asap!
Have you received any direct correspondence from the Lender (An acceptance? Request for Proof of Funds? Anythng that gives you a 'Contact Person'?)
The Listing Realtor has a contractural committment with the property-owner and your Realtor - but has no control over you, your banker or your Attorney.
How do you know that the lender knows what's going on?
What does the Lender that the Realtor is recommending say about these 'threats'?
Time to get pro-active - do-it-yourself is the way to go . . . .
Hope this helps . . . .
No they can't insist you use anyone. Call the principal/managing broker for the listing agent and have a chat with them. I agree with rjrcm that a few agents out here insist that the buyer get prequalified with one of their lenders, but that is before the offer is accepted by the seller.
The listing agent isn't a party to the transaction. The contract is between you and the seller. Period.
LisaMisa - The Listing Realtor is not a 'principal' to your contract, and, therefor, has no part or authority to 'demand', threaten or even request anything!
What does the seller say about it? Usually they just want to get out of the mortgage asap!
Have you received any direct correspondence from the Lender (An acceptance? Request for Proof of Funds? Anythng that gives you a 'Contact Person'?)
The Listing Realtor has a contractural committment with the property-owner and your Realtor - but has no control over you, your banker or your Attorney.
How do you know that the lender knows what's going on?
What does the Lender that the Realtor is recommending say about these 'threats'?
Time to get pro-active - do-it-yourself is the way to go . . . .
Hope this helps . . . .
Thanks for the reply! That's what's pissing me off the most. The seller's agent is making all kinds of demands and threats, supposedly on the seller's behalf, through my RE agent and the banker they force upon me.
I've been working with the local bank's lender - talked to the contact person, submitted all paperwork and received the GFE/Disclosures package from the lender, ready to move forward. The problem is I wont be able to meet the commitment deadline in the contract unless the seller's side agrees to grant an extension, which is what the seller's agent and their banker is using to hold over my head. The seller's agent and that banker they recommended are basically in direct contact and in cahoots on this whole thing.
I've been doing everything in my power to get everything resolved, just to run into more resistance from the seller's agent. I'm not sure what else I can do. Any suggestion?
If it was me, I'd probably just walk away. You can report the agent to the appropriate channels but do you really want all the stress associated with that?
So what if their banker gives you a loan with a considerably higher interest rate and closing cost? Would you just take it anyway?
Talk to your agent, he/she should be working for you and upholding your rights as a buyer since he/she represents you and nobody else.
My agent is part of the problem. Inexperience and eager to please the colleagues (i.e. other RE agents). My agent also keeps claiming "it's my first short sale" as an excuse to not be able to give me any helpful information... Should I get my contract/closing attorney involved?
Thanks for the reply! That's what's pissing me off the most. The seller's agent is making all kinds of demands and threats, supposedly on the seller's behalf, through my RE agent and the banker they force upon me.
I've been working with the local bank's lender - talked to the contact person, submitted all paperwork and received the GFE/Disclosures package from the lender, ready to move forward. The problem is I wont be able to meet the commitment deadline in the contract unless the seller's side agrees to grant an extension, which is what the seller's agent and their banker is using to hold over my head. The seller's agent and that banker they recommended are basically in direct contact and in cahoots on this whole thing. I've been doing everything in my power to get everything resolved, just to run into more resistance from the seller's agent. I'm not sure what else I can do. Any suggestion?
When you say "do it yourself," what do you mean?
LisaMisa - So, the Listing Realtor & his Lender are in 'cahoots', so you don't want to deal with them any more. (Let YOUR Realtor deal with them)
I asked if you have any 'contact info' from the Short-Sale lender or the Property-Owner. If so, that's who I'd call next. Usually the owners want to get the deal done and so does their Lender.
DIY means call them; ask if they know what's going on; ask what they need from you to proceed asap.
Hope this helps. . . .
LisaMisa - So, the Listing Realtor & his Lender are in 'cahoots', so you don't want to deal with them any more. (Let YOUR Realtor deal with them)
I asked if you have any 'contact info' from the Short-Sale lender or the Property-Owner. If so, that's who I'd call next. Usually the owners want to get the deal done and so does their Lender.
DIY means call them; ask if they know what's going on; ask what they need from you to proceed asap.
Hope this helps. . . .
Thanks Ezicit. Is it okay for the buyer to contact the seller directly, by-passing the agents and lawyers though? Should I at least try to go through our lawyers first?
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Short sale mortgage . . . .
