Replies to This Discussion

Permalink Reply by AMY GERRISH on September 21, 2010 at 10:26am

I would think you need access to this, especially to confirm that you are getting any closing cost incentives. I would not move forward without seeing. Our short sale addendum states that this is when inspections start, upon approval. If they can't prove it, then no inspections.

Permalink Reply by Bryant Tutas on September 21, 2010 at 10:34am

Alex. Does it really matter? As long as they put in writing that the short has been approved based on the terms and conditions of the current purchase contract then what difference does it make if you see the actual letter? Now having said that. We usually share the approval letter with the buyers agent. We do however block out any confidential information. Get something in writing whether it's the actual letter or not and head towards closing.

Permalink Reply by Joseph Kuhl on September 21, 2010 at 10:39am

Does it matter, ie does it affect the transaction? I would send the seller agent a focused email, basically ok fine, but is there anything in the approval that will materially affect this transaction? I like emails, because agents are more careful about how they reply (you have it in writing). Agents are required to reveal any information that they have that would affect the value of the property or the outcome of the sale.

For example, the bank is asking the seller to bring 10K to the table, and he/she doesn't have it. That's gonna be a problem and you have a right to know that.

The flip side involves privacy. The seller is negotiating with the bank - should they for example provide the buyer with 2 years tax returns? That's their private information.

A last point for full disclosure - how do you even know, for sure, that there is an approval, unless you see it?

It's a fine line - a lot depends on the agent on the other side. I'm in southern NY, where lawyers are almost always involved. Not sure where you are sited, but if there's a lawyer for the buyer involved, let him ask for it.

Permalink Reply by Dean Ouellette on September 21, 2010 at 10:39am

I also do not provide the letter, i send a notice of acceptance with the terms, but not the letter. The letter is the agreement between the bank and my seller. Title will get a copy of the letter, if you have questions you can ask title to confirm.

Permalink Reply by Alex on September 21, 2010 at 3:17pm

thanks for the comments. I will ask for specific terms in the letter to see if things are ok.

Permalink Reply by Mary Wilcox on September 21, 2010 at 8:27pm

In my experience the buyer's lender/underwriting requires a copy of the letter. A few sent it to the lender without the buyer's agent being able to see it. They said they felt comfy with that because lenders are held to the confidentiality standards,
Also had trouble with my sellers on a couple of occasions when the buyer's lender wanted their SSN to check them out on the FHA list. They made me go directly to the lender & not give the number to the buyer's agent.
Confidentiality... be very careful with it guys! It could bite ya big time.

Permalink Reply by Jeff Payne on September 23, 2010 at 11:28am

I don't see the need to send the letter to the buyer or the buyers agent. I send it to the title agent so that they can close the deal. The buyers agent just needs to be concerned about clear title and the title agent can handle that. Underwriters asking for approval letters are just doing it to have one more thing that they can delay the file because there is no need whatsoever for the buyers lender to get the short sale approval letter.
On the other side, who really cares, I don't mind sending the letter with the sellers permission

Permalink Reply by Wendy Rulnick on September 23, 2010 at 3:33pm

Jeff - I like your tip to get seller permission to share the letter. 

Jeff Payne said:

I don't see the need to send the letter to the buyer or the buyers agent. I send it to the title agent so that they can close the deal. The buyers agent just needs to be concerned about clear title and the title agent can handle that. Underwriters asking for approval letters are just doing it to have one more thing that they can delay the file because there is no need whatsoever for the buyers lender to get the short sale approval letter. On the other side, who really cares, I don't mind sending the letter with the sellers permission

Permalink Reply by Jeff Payne on October 1, 2010 at 2:51am

It is the sellers letter :) I really don't see the need for the buyers agent to get the letter, other than to be nosey I think. I have recieved the approval letters when we are on the buyers side and I always save them for future contacts :)

Permalink Reply by Robin M. Willis on October 1, 2010 at 8:13am

The important part is to be certain that the approval is valid and that you as the buyer's agent knows the terms. I had one agent who wanted to black out private info (like loan #, etc) and that was fine with me. I just wanted to be sure that if my buyer started spending money on inspections we actually did have an approval letter that the Seller had agreed to at terms we all understood.

Permalink Reply by Jeff Payne on October 1, 2010 at 9:22am

Good point, that is why I send it to the title company first, they can confirm that there is actually an approval letter

Robin Willis said:

The important part is to be certain that the approval is valid and that you as the buyer's agent knows the terms. I had one agent who wanted to black out private info (like loan #, etc) and that was fine with me. I just wanted to be sure that if my buyer started spending money on inspections we actually did have an approval letter that the Seller had agreed to at terms we all understood.