So it seems to be a growing trend now that a buyers lender is demanding to see the lenders full blown short sale approval letter, not just the cover page with all the terms. In the past i have always taken the approval letter and removed the SS# and Loan# for obvious reasons. I got a call yesterday from a buyers lender demanding to see all the pages of the approval letter, that clearly have no information that they would need. They told me that they are getting bombarded with Realtors who are faking short sale approval letters to keep buyers around or maybe to buy themselves some time until they get a real approval.
I'm calling our legal hotline tomorrow when its open, but i wanted to see if anyone had ran into problems with this lately? I would hope the NAR would weigh in on the issue. Seems as though we as Realtors are opening ourselves up to all kinds of legal problems if we start giving out anything a buyers lender demands just because we have scumbags ruining it for the rest of us.
Thanks!
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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?
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???
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
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?
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?
Cal. In Florida we are transaction brokers by default. NO fiduciary.
And of course the seller receiving funds as closing has NOTHING to do with e value of the property.
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