Replies to This Discussion

Permalink Reply by Pat Chadwell on October 2, 2011 at 10:26am

Hi Mary Lou,

 

I think you need to provide the context in which this was said.  Otherwise all of us are putting in what we think a bank might have said.  Sounds like you have a lot of people interested in answering the question once all the data is provided. :)

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Permalink Reply by Richard on October 2, 2011 at 11:58am

Guys,

 

Maybe someone can educate me as I'm still gathering information and learning about the real estate profession.  I'm going to ask a dummy question, wouldn't this issue be covered under errors and omission coverage?  Or, is Mary referring to criminal acts?  Errors and omission insurance seem to be a standard coverage in other professions.  Does real estate practice require this type of coverage?  Maybe Mary can add more details about this approval letter also.

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Permalink Reply by Jeff Payne on October 3, 2011 at 9:19am

Richard, it may be covered in E&O providing that the agent has E&O to cover a short sale.  I wish Mary Lou would come back and clarify this statement.

If I were to venture a guess, she probably heard someone tell her that the banks are coming after agents as I have never seen an approval letter that stated any recourse to the agent.  Afterall, the contract is between buyer and seller and in my state I broker the transaction through transaction brokerage. 

Arms lenth is a whole different topic though

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Permalink Reply by MaryAnn Dempsey on October 2, 2011 at 3:45pm

Never. How could they. Were never the borrower

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Permalink Reply by Ray Snook on October 3, 2011 at 12:49am

Seems Mary Lou has gone missing... or run away because of the approval letter.

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Permalink Reply by Michael Campus ABR,SFR,SRS on October 3, 2011 at 6:34am

Mary Lou, can you put on your post exactly what the letter says?

 

Even if its a reference to 'arms length transaction', they (bank) would have to be able to prove it.

How much would that cost? How long would it take? Was there a violation of an actual law or just a bank policy?

Hmmm...I think banks are going to make alot more money with their new Debit card surcharges than attempting to pursue this nonsense.

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Permalink Reply by Paola Martinsen on October 3, 2011 at 11:33am

its probably that they will come after the agent if there is fraud that the agent was ivolved in i don't think they could legally come after the agent for any deficiency because the note is between the seller and the investor or note holder.

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