Replies to This Discussion

Permalink Reply by Jeff Payne on June 30, 2011 at 3:55pm

Shouldnt be a big deal to let them see it but it also shouldn't be a big deal as long that the title company confirms wiht loan underwriter that they have the approval letter and will issue clear title.  I think alot of times it is nosy people wanting to see the short sale letter

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Permalink Reply by Wendy Rulnick on June 30, 2011 at 7:18pm

Travis - I am getting more of this, but haven't seen issues with redacting the loan #, not that it would so someone any good anyway.

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Permalink Reply by Abraham Walker on June 30, 2011 at 8:09pm

I ran into a similar situation. I just folded and turned over the requested documents to get the deal closed.  If I was representing the buyer I would demand (in the contract) to see proof that the short sale was approved.

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Permalink Reply by Travis Davies on June 30, 2011 at 8:13pm

Well its not that i didnt produce a protected approval letter, removing all private info, its that fact that the lender demanded not to process the buyers loan until all 5 pages of the approval letter were produced. Now tell me what does tax consequences, where to send the payment too, how its going to be reported on your credit have anything to do with a buyer getting a loan.

 

We were warned by our Attorney General not to release private information. The big question I have is where do you draw the line?

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Permalink Reply by Harry Clay on June 30, 2011 at 8:50pm

Given that everyone, sellers & buyers, go into the transaction knowing that the short sale is subject to 3rd party approval...I just don't see what the big deal is to forward the entire approval letter to the buyer's side.

I do it on all my transactions; it's a team effort. I see it as pertinent information that affects everyone involved.

We already collect SS numbers, from the buyer for Equator, & the buyer has to initial the seller's FIRPTA forms, too. The seller is losing the house & is in financial straits; it's not like the buyer is unaware of the issues, or is going to take advantage of the financially weaker party.

And who cares about the loan number? It's soon to be a closed account, anyway.

Forwarding that Short Sale Approval Letter & Closing Instructions is a big shot of adrenaline to everyone, after weeks & sometimes months of haggling & indecision.

I look forward to it.

 

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Permalink Reply by Kimberley Kelly on July 1, 2011 at 9:27pm

Ha-ha Harry..I'm with you.  I always supply the Buyer's Agent with the Approval letters..I feel that it lets them know that I'm doing my job, that I'm keeping them in the loop, that I am not hiding anything and that they are an important part of the transaction!  What's the big deal???

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Permalink Reply by Jeff Payne on July 2, 2011 at 11:26am

Do you also provide the payoff letter to the buyers agent on a non short sale property? The buyers lender should only be concerned with the title -company issuing clear title to the property. I believe that the short sale approval is a condition that needs to be cleared for title not for buyers lender approval. I believe that 99% of the time it is the buyers agent not the lender that wants to see the approval.

Kimberley Kelly said:

Ha-ha Harry..I'm with you.  I always supply the Buyer's Agent with the Approval letters..I feel that it lets them know that I'm doing my job, that I'm keeping them iwann the loop, that I am not hiding anything and that they are an important part of the transaction!  What's the big deal???

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Permalink Reply by Thom Colby 888-391-5245 CA Brkr on July 2, 2011 at 7:27pm

This week I had the same issue - at first, I was a lilttle concerned as I don't see why the Seller needs to provide personal and private information to the buyer's lender (Loan #, SSN #, etc.) I checked with the sellers and they were ok with it so we let it go. 

 

I think with the amount of fraidulent activities happening there will be more and more of these requirements - I just think we have to be careful not to provide a Buyer or Seller's information to anyone without their permission.

 

Best of Luck,

 

Thom Colby

Broker

Newport Beach

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Permalink Reply by Bryant Tutas on July 3, 2011 at 7:03am

But what if.....it's a Chase approval showing the seller getting $20,000 back? I just had this happen this week. The buyer is cash so there is no lender involved. However I sent the letter over to the BA, as per the terms of the short sale contingency in the contract, with I noted not to give it to the buyer since it contained personal infomation. The BA called me and mentioned that of the buyer had seen that letter they would want a better deal on the property knowing that the seller is receiving finds at closing. So maybe we rerleasse the letter to the BA and the buyer's lender but make sure they sign a confidentiality form so they buyer doesn't get to see it. Thoughts?

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Permalink Reply by Linda Gregory on July 3, 2011 at 7:30am

Just my opinion-but Buyers today are getting even more greedy-that buyer is already getting a great deal on the heels of a seller who has come upon hard times-so much so he is losing his home-and the $20,000 Chase is giving the Seller probably won't do much to bring that Seller to the financial equivalent of the buyer-to me the mindset that because the Seller is getting $20,000 from Chase, he should get an even better deal-is ridiculous. If I were that Buyer sitting at the oppposite end of the signing table at closing facing a couple who have essentially lost their home-I would be having bitter sweet feelings-Just saying...

Bryant Tutas said:

But what if.....it's a Chase approval showing the seller getting $20,000 back? I just had this happen this week. The buyer is cash so there is no lender involved. However I sent the letter over to the BA, as per the terms of the short sale contingency in the contract, with I noted not to give it to the buyer since it contained personal infomation. The BA called me and mentioned that of the buyer had seen that letter they would want a better deal on the property knowing that the seller is receiving finds at closing. So maybe we rerleasse the letter to the BA and the buyer's lender but make sure they sign a confidentiality form so they buyer doesn't get to see it. Thoughts?

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Permalink Reply by Paul Antonelli on July 3, 2011 at 7:34am

Personally, I have always given the buyers agent the approval letter as soon as I have gone through it with my attorney and was approved by the sellers. But, isn't the real issue here, how do we get rid of the agents faking this stuff? It's always the bad apples that make our lives difficult. It's like the agents that put the properties at $90K that are market valued at $200K,  just to get a quick offer so the bank will work on it.

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Permalink Reply by Cal Yoder on July 3, 2011 at 7:48am

I would ask if I could actually sign a confidentiality agreement to not disclose something to my buyers. It is part of my fiduciary duty, isn't it. I totally understand not wanting to because my buyer is being unreasonable, but professionally can a BA know this info and not turn it over?

Bryant Tutas said:

But what if.....it's a Chase approval showing the seller getting $20,000 back? I just had this happen this week. The buyer is cash so there is no lender involved. However I sent the letter over to the BA, as per the terms of the short sale contingency in the contract, with I noted not to give it to the buyer since it contained personal infomation. The BA called me and mentioned that of the buyer had seen that letter they would want a better deal on the property knowing that the seller is receiving finds at closing. So maybe we rerleasse the letter to the BA and the buyer's lender but make sure they sign a confidentiality form so they buyer doesn't get to see it. Thoughts?

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