"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."

"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…"

"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…"

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

"Never. How could they. Were never the borrower"

"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…"

"Good response from Steeler Nation!!!"

"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…"

"No, but if I do I don't think I would agree to it, depending on what it said exactly. I would definitely have an attorney look at it."

"We have not once seen or heard of this being the case. Mike Netzel Keller Williams Realty Pittsburgh"

"I think there are some arms length transaction forms that put the agent right into the mix, but I wouldn't worry.  I think the lenders concern is over fraudulent activities."

"Seems like Mary lou must have received one by the title of the post "Approval letter STATES recourse to broker and agent". Not sure how they could enforce that since it would be the seller that signs to accept the terms of the approval.…"

"Is Mary Lou confusing this with the terms of an "arms lenght transaction" form? Sounds like it. There is no way other than mortgage fraud, that a lender can come after " the broker or agent"."

"Mary Lou, what was the purpose of this post? Did you recieve a letter stating that there could be recourse to broker and agent?  What exactly did it say?  What bank sent this letter?"

"Not yet,,have you? I wouldn't be surprised if they start it."

"No I haven't.  Who is doing it?"