I have had a question for some time regarding how some REO homes are marketed in the MLS. On a regular basis I see bank owned homes listed in our MLS with the requirement that the buyer get pre approved through the same bank that is offering the house for sale.
This raises an interesting question regarding the confidentiality of the information that the bank is aquirining on the potential mortgage customer. Does the bank have to keep this information confidential or can they share it with the very folks at the same bank who are negotiating the terms of the offer? This has the potential to put buyer clients in a much weaker negotiating position if the very bank that is negotiating the offer knows how much your client is qualified for.
Am I off base in being concerned about this? I would especially like to hear from the mortgage folks.
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