Checking Seller’s credit – Anyone heard of this

Seller’s agent gave us the weekly update…..

 

BPO is done 2 weeks back, Currently its under evaluation…BoA is checking sellers credit… btw, after reading some of the stories here , I  know that its just getting started for me...

 

I am the buyer…just to give a background on the whole thing…After 2 buyers backed out after submitting the SS offer, we are the third lucky ones!!!…Our offer is very close to the approved price for the last buyer. We submitted the offer in February…with SSN, DOB etc. Looks like BPO is done. I didn’t hear from sellers agent about negotiator, counter offer etc …All I heard was its "under review". Latest one is that they are checking Sellers credit. Any thoughts? Anyone heard of this? Is this good or bad?

 

Thanks

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Replies to This Discussion

Permalink Reply by Katerina Gasset on March 25, 2010 at 7:57pm
They always check the sellers' credit. The worse the credit is, the worse the score is; the better for the seller and ultimately for you. They look for things like is he using his credit cards to pull a lot of cash out. Is he late on his payments on his car and other properties. The higher the score the more the lender believes the seller cares about his credit. The more the seller cares about his credit, the more the lender may want in a promissory note or cash to closing. They are rewarded for having crappy credit and punished for good credit, unfortunately.
Good luck to you in your success in getting to closing. I will say a prayer for you right now.
Permalink Reply by Phil on March 25, 2010 at 8:57pm
Thanks..I am sure I need some prayers to make this happen

Any idea as to what stage they order credit check for the Seller?

Is this after Negotiator etc were assigned or after they give initial approval OR IS IT JUST THE BEGINING OF MY JOURNEY
Permalink Reply by Bryant Tutas on March 25, 2010 at 11:14pm
Phil. It sounds to me like you are closing in on getting a response from the lender. They are gathering info which means the file is being actively worked. Hang in there.
Permalink Reply by Gunna Voigt on March 26, 2010 at 2:45am
Since the seller is asking the bank to basically forgive his debt it would be very normal for them to check his credit. There are now people around who ask for a "strategic" short sale, i.e. they are not in real financial trouble but want to get rid of the house by having the bank (and all of us!) pay for their mistake or challenge. In that case, the bank may want them to sign a note or do whatever they deem necessary to minimize the loss for them (and us!).
Permalink Reply by John A. Zentmyer on March 26, 2010 at 8:58am
Lenders are checking the sellers credit for??

1. Dropped scores = less judgment or Prom note
2. Lates on payments= same as above
3. If everything else is on time or other creditors balances have dropped. RED FLAG !!!!! Questionable hardship ??

Johnny Zz
John Zentmyer
Realty World Caton

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