Sharing short sale approval letters with buyer's agent....pros and cons? Does buyer's agent need to see letters?
The buyer's agent says : "We would like to see what the letter is offering, that shouldn't make a difference and really no reason to hold it from us...Right? I have never had an agent hold the letter received from a bank before waiting for the others, is there a reason we can't have it?"
Listing agent says "I’ve never had a buyer’s agent ask me for copies of the letters. All they wanted to know is whether or not the short sale is approved. The conditions of the approval is between the lender and the borrower. "
The first letter states
1) what they want to net after expenses, and
2) that the basis of this approval is on a sales price stated in the contract.
Because second lien holder is not yet received, no one knows what the payoff for the second will be, what expenses will be paid out of the difference between what the first wants to net and the sales contract.
Both loans with Chase.
Do you share approval letters as they come in? Do you share them at all?
Replies to This Discussion
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Permalink Reply by Mike Horton on
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In Arizona we now have a standard form for agreement notice that is used by the listing agent to notify the buyers agent that a successful negotiation has been reached after the seller and lien holder(s) have reached an agreement on the terms of the lien release. These terms are stated in an approval notice that forms a contract between the seller and the lien holders. If there are differences in the purchase contract terms the seller and buyer had previously agreed to then those changes in terms must be documented by an addendum signed by the seller and agreed to by the buyer. Legally these are two separate contracts as defined by our state association legal teams and recent case law. The buyers agent, buyer, mortgage company, or anyone else has no right to have a look at the confidential contract (approval letter) entered into by the seller and lien holder(s). Technically without the written consent of the seller to disclose the approval letter from the lien holder(s) it is a violation of confidentiality. Buyers lenders only need to see a legal and completed contract. Then to complete escrow as a normal course. If someone writes an addendum, has their client sign it and presents it as truth about a lien release when it is false for any reason, I can think of more ways then 1 to have their license suspended and maybe some jail time. Lets not jump on the anything goes bandwagon because it is a short sale. Just my 2 cents.
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Permalink Reply by Eric Rogers on
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I ask my seller's permission first before sending any documents such as this to anyone.
When I send it to the other agent, I remove phone numbers, account numbers and other identifying details.
I didn't always do this - then I had a batty, half-crazy buyer's agent call the negotiator assigned to the file off of a counteroffer letter using the loan # and negotiator's contact info and proceed to cuss the negotiator out. After that, our negotiator went from responding promptly to hardly at all. The file never closed - the home went to foreclosure.
I understand the buyer's agent likely needs the letter but I will never again put myself or my sellers at risk by giving contact info, loan numbers etc, to them.
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