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gonzo23456
LIF Infant
Member since 5/08 155 total posts
Name:
Wendi
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Has this happened to anyone?????
Hi everyone,
I have not been on here since my last house fell through. We recently found a house that we love. Our offer was approved by the home owner and we had the inspection done on the house (came back great). However, the homeowners real estate agent told us that they will not draw up the contract until we go through the real estate agents mortgage broker for a pre-approval. However, we already have a pre-approval through our bank that we are using. The real estate agent is stating that having the pre-approval by her mortgage broker will just justify our approval through our bank. Also, she is stating that we dont have to go through this mortgage broker, only get the pre-apprival. It is insane to me since our pre-approval is for far more than we are purchasing the house for. Has this happened to anyone before?
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Posted 2/22/10 5:05 PM  |
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
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Re: Has this happened to anyone?????
No. And as long as your pre approval is from a legit bank, I don't see why she cares?
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| Posted 2/22/10 5:10 PM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Has this happened to anyone?????
sounds like she is trying to get her broker business so she can get a kickback.....
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| Posted 2/22/10 5:14 PM |
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gonzo23456
LIF Infant
Member since 5/08 155 total posts
Name:
Wendi
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Re: Has this happened to anyone?????
Posted by alli3131
sounds like she is trying to get her broker business so she can get a kickback.....
That's what I thought. But we are approved from a pretty well known bank. Our lawyer is now involved and is saying that what she is doing is wrong since we already have a pre-approval. I just dont get it....
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| Posted 2/22/10 5:19 PM |
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legallyblonde
LIF Adolescent
Member since 8/08 850 total posts
Name:
K
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Re: Has this happened to anyone?????
Posted by gonzo23456
Posted by alli3131
sounds like she is trying to get her broker business so she can get a kickback.....
That's what I thought. But we are approved from a pretty well known bank. Our lawyer is now involved and is saying that what she is doing is wrong since we already have a pre-approval. I just dont get it....
That's exactly what she is doing. The real estate agent has no business calling the shots on the deal. They should be facilitating the process only. The deal is ultimately between you and the sellers. Let your lawyer handle the situation.
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| Posted 2/22/10 5:36 PM |
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gonzo23456
LIF Infant
Member since 5/08 155 total posts
Name:
Wendi
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Re: Has this happened to anyone?????
Posted by legallyblonde
Posted by gonzo23456
Posted by alli3131
sounds like she is trying to get her broker business so she can get a kickback.....
That's what I thought. But we are approved from a pretty well known bank. Our lawyer is now involved and is saying that what she is doing is wrong since we already have a pre-approval. I just dont get it....
That's exactly what she is doing. The real estate agent has no business calling the shots on the deal. They should be facilitating the process only. The deal is ultimately between you and the sellers. Let your lawyer handle the situation.
She even a letter that was created by her and signed by the home owner requesting that this be done before the contract is done.
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| Posted 2/22/10 5:46 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Has this happened to anyone?????
that's crazy!! And I think a wee bit illegal! unless she told you that the homowoner will only accept pre-approvals through X bank when she showed you the house, IMO she has no grounds to stand on. besides, I wouldn't want another hit on my credit report when you have a letter!! tell them to take what you have or your walking!!
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| Posted 2/22/10 6:03 PM |
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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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Re: Has this happened to anyone?????
It is legal, they are allowed to do that from what I understand.
You don't have to use the mortgage lender, but it shows the homeowner that you are more than approved -- they have a right to request it, as weird as it sounds.
It further protects them. If I were selling a house, I'd do the same.
A home I just looked at over the weekend requested the same thing - a second pre-approval through another lender. It was stated that on the listing itself, so it wasn't just me that had to go through it- anyone who wanted to bid on it had to.
Message edited 2/22/2010 6:56:57 PM.
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| Posted 2/22/10 6:39 PM |
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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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Re: Has this happened to anyone?????
There is also a lot of debate on whether it can hurt your credit or not - as far as pre-approvals. However, the points max that would be lost is between 5-10, which is small potatoes if you already have good enough credit to qualify for a home.
there are loopholes and if you already have the pre-approval, they can run off of that. The 2nd preapproval isn't a full approval sometimes; most times it is just backing up the first one.
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| Posted 2/22/10 7:00 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Has this happened to anyone?????
Tell the agent to either stop the shenanigans, or you will report her to the company's broker, LIBOR, and the state.
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| Posted 2/22/10 7:31 PM |
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gonzo23456
LIF Infant
Member since 5/08 155 total posts
Name:
Wendi
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Re: Has this happened to anyone?????
One thing I forgot to mention is that it is a Short Sale. Not sure if that changes things. What gets me. Is her mortgage broker is not through a well known company as mine. Huh. I just hope we don't lose the house. We can't lose another one because it will be devestating to us.
Thanks everyone for all your help!
Message edited 2/22/2010 7:37:24 PM.
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| Posted 2/22/10 7:35 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Has this happened to anyone?????
Posted by gonzo23456
One thing I forgot to mention is that it is a Short Sale. Not sure if that changes things. What gets me. Is her mortgage broker is not through a well known company as mine. Huh. I just hope we don't lose the house. We can't lose another one because it will be devestating to us.
Thanks everyone for all your help!
Oh that's a big difference. every short sale we tried for we had to have this.
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| Posted 2/22/10 7:46 PM |
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Jen2999
Baby girls & beagles rock!
Member since 8/06 10356 total posts
Name:
Jen
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Re: Has this happened to anyone?????
Posted by rileysmama
It is legal, they are allowed to do that from what I understand.
You don't have to use the mortgage lender, but it shows the homeowner that you are more than approved -- they have a right to request it, as weird as it sounds.
It further protects them. If I were selling a house, I'd do the same.
A home I just looked at over the weekend requested the same thing - a second pre-approval through another lender. It was stated that on the listing itself, so it wasn't just me that had to go through it- anyone who wanted to bid on it had to.
Totally legal.....you will see this a lot on short sales and FSBO houses!
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| Posted 2/22/10 8:04 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Has this happened to anyone?????
it is legal if the SELLER requests it
if the real estate agent requires it - that is illegal
ETA- example- the house is a REO (bank owned) by Bank of America and you are required to be pre-approved by them
if it's a random no name mortgage company- I would call the broker/owner of the real estate company to confirm that they have this "rule" in writing from the seller
Message edited 2/22/2010 10:24:29 PM.
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| Posted 2/22/10 10:10 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Has this happened to anyone?????
Posted by Beth
it is legal if the SELLER requests it
if the real estate agent requires it - that is illegal
ETA- example- the house is a REO (bank owned) by Bank of America and you are required to be pre-approved by them
if it's a random no name mortgage company- I would call the broker/owner of the real estate company to confirm that they have this "rule" in writing from the seller
Well I think that's the point and why this RE is full of it IMO.
So it's a short sale. Fine. I guess I have to get pre-approved by the bank holding the lien so that might move the short sale approval process faster.
However... the RE wants me to get pre-approved with her broker who has nothing to do with the short sale? Give me a break.
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| Posted 2/22/10 10:30 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Has this happened to anyone?????
Posted by ave1024
Posted by Beth
it is legal if the SELLER requests it
if the real estate agent requires it - that is illegal
ETA- example- the house is a REO (bank owned) by Bank of America and you are required to be pre-approved by them
if it's a random no name mortgage company- I would call the broker/owner of the real estate company to confirm that they have this "rule" in writing from the seller
Well I think that's the point and why this RE is full of it IMO.
So it's a short sale. Fine. I guess I have to get pre-approved by the bank holding the lien so that might move the short sale approval process faster.
However... the RE wants me to get pre-approved with her broker who has nothing to do with the short sale? Give me a break.
I agree...this screams kick back...
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| Posted 2/22/10 10:39 PM |
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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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Re: Has this happened to anyone?????
Posted by ave1024
Posted by Beth
it is legal if the SELLER requests it
if the real estate agent requires it - that is illegal
ETA- example- the house is a REO (bank owned) by Bank of America and you are required to be pre-approved by them
if it's a random no name mortgage company- I would call the broker/owner of the real estate company to confirm that they have this "rule" in writing from the seller
Well I think that's the point and why this RE is full of it IMO.
So it's a short sale. Fine. I guess I have to get pre-approved by the bank holding the lien so that might move the short sale approval process faster.
However... the RE wants me to get pre-approved with her broker who has nothing to do with the short sale? Give me a break.
But the RE agent will not receive any kick-backs from the appointed bank unless maybe the buyer goes through that specific bank - which she probably wouldn't. And even then, that'd be pretty rare. Being a short sale, this requires some special concern, and no one wants to be screwed anymore than they already have.
A lot of sellers now - especially in short sale circumstances - need to further verify all information. When it is a short sale, you can not haggle the price - it is what it is. The bank needs to be assured 200% that the prospective buyer has the proper credit and funds. Banks don't mess around anymore. In many ways, this can also save the buyer heartbreak -- I know many probably got approved for way more than they should -- the mortgage company doesn't take into consideration lifestyle, etc.
The RE representing the seller of the home has to dot his or her i's and cross t's. It means a lot to be pre-appoved, not pre-qualified, from a reputable and "name" or "label" bank.
This is probably (& hopefully) in the contract. It wouldn't hurt to check, that's all.
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| Posted 2/22/10 10:45 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Has this happened to anyone?????
sorry but this is not a common practice for listings
and in this case the seller is requesting a no name broker- not the bank the has the loan for the short sale
it's very rare to see on non-bank owned properties
I have never submited an offer with out a pre-approval- who the pre-approval is from is up to the buyer
the seller wants them to use joe shomo mortgage- then that's legal - but it's not common practice
if Mary Realtor puts the requirment in b/c Joe buys lunches for her open houses- then what Mary is doing is illegal according to LIBOR
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| Posted 2/22/10 10:54 PM |
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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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Re: Has this happened to anyone?????
I see what your saying - but if this is in the contract, they have to follow through if they want the house, right?
OP wrote: "She even a letter that was created by her and signed by the home owner requesting that this be done before the contract is done."
I'm just asking here for info. A home I saw this past weekend -- the homeowners also wanted pre-approval through their bank, besides just mine. I didn't think it would matter and if that's what they want - then sure. I wouldn't go through their bank, but if it was in the contract, then I'd do it. Granted, it wasn't a short sale.
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| Posted 2/22/10 11:02 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Has this happened to anyone?????
Posted by rileysmama
OP wrote: "She even a letter that was created by her and signed by the home owner requesting that this be done before the contract is done."
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I didn't see that till now
then it is legal
the seller is requesting it
nothing you can do
but it is NOT common practice and not something I would recommend a seller do - I would not make buyers jump thru hoops in this market
I am a REO agent and the banks we work with do not require this
the only bank I see requiring this alot is BOA
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| Posted 2/22/10 11:08 PM |
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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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Re: Has this happened to anyone?????
it sure is annoying though. I don't blame people, but it's annoying when you already have the pre-approval.
I was contemplating bidding on the home that wanted another pre-approval, and I won't lie - i groaned. Not that it's a HUGE hassle, but it's aggravating.
Hopefully, it all works out for you, OP! 
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| Posted 2/22/10 11:26 PM |
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gonzo23456
LIF Infant
Member since 5/08 155 total posts
Name:
Wendi
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Has this happened to anyone????? (with update)
So their realestate agent wants us to go through her mortgage broker for the pre-approval not who the existing mortgage is through. She had a pre-typed letter letter that the homeowners signed stating that we needed to go through this mortgage company. She did not tell my real estate agent until after we did the inspection.
Update.........
Our lawyer called the real estate agent and she hung up on him during their conversation. But basically, she said that if we don't do this then we will not go into contract. He tried to call their lawyer and the other mortgage company but knowone will return his calls (because the real estate agent told them not too)Our lawyer is advising us against this deal. Their real estate agent also scheduled an open house for this weekend. So we lost the house, I am devestated over this. It's another house that we went through the motions and lost. I can't do this anymore. I don't know why it is so difficult for us.
Message edited 2/23/2010 6:52:20 PM.
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| Posted 2/23/10 5:24 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Has this happened to anyone?????
Posted by gonzo23456
So their realestate agent wants us to go through her mortgage broker for the pre-approval not who the existing mortgage is through. She had a pre-typed letter letter that the homeowners signed stating that we needed to go through this mortgage company. She did not tell my real estate agent until after we did the inspection.
Update.........
Our lawyer called the real estate agent and she hung up on him during their conversation. But basically, she said that if we don't do this then we will not go into contract. He tried to call their lawyer and the other mortgage company but knowone will return his calls. Our lawyer is advising us against this deal. Their real estate agent also scheduled an open house for this weekend. So we lost the house, I am devestated over this. It's another house that we went through the motions and lost. I can't do this anymore. I don't know why it is so difficult for us.
I'm sorry
Her scheduling an open house doesn't mean you totally lost the house does it? I would call her yourself and get all the details, and if they require it (which is very common with short sales) and this house means that much to you, just get it, but make sure your clear, your not using their compnay for the mortgage.
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| Posted 2/23/10 6:17 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Has this happened to anyone?????
The open house means nothing
Have your lawyer call her boss...the broker
If this doesn't work out do yourself a favor and stay away from short sales...I have rarely heard a good experince from one...there are plenty of houses out there
If you need help fm me
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| Posted 2/23/10 9:32 PM |
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astroqueen74
Vibrant Health
Member since 1/07 2822 total posts
Name:
Karina
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Re: Has this happened to anyone?????
Posted by alli3131
sounds like she is trying to get her broker business so she can get a kickback.....
I agree!
your choice of bank is sufficient.
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| Posted 2/23/10 11:03 PM |
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