Special offer

Bankruptcy, Foreclosure Disclosure? What Would Thomas Jefferson Say?

By
Mortgage and Lending with VISION MORTGAGE LLC 6086

When Sellers list their home for sale with a Realtor, they must complete, sign and date a questionnaire concerning various details of the house and property. The questionnaire requires answers to all sorts of questions concerning plumbing, structural faults, leaks, drainage problems, heating problems, cooling problems, etc. Copies of this are distributed to all interested lookers, typically upon viewing the property.

OK - now that the Seller has the house on the market, along come a buyer that declaired bankruptcy 13 months ago. FHA Guidelines MAY approve this mortgage, or may not befcause FHA guidelies want 24 months from bankruptcy but will consider as few as 12 months with "credit repair efforts" - which is subject to manual underwriting rewiew. In other words, this person cannot be pre-qualified. Yet, a mortgage person issue a pre-qual letter based on what they "think" - trouble is they're not lending the money...

My question is should Sellers require potential Buyers to complete a similar questionnaire as to their credit worthiness - which would require them to disclose credit issues?

Your thoughts...

Rick Trowe
Cerium Learning - Tulsa, OK
Go With Trowe

As a seller, I'm not interested in disclosing credit issues. Do you have a compelling reason or need for me to disclose?

Sep 13, 2008 11:30 PM
Michael Stephan
VISION MORTGAGE LLC - Westport, CT

to RT: Only interested in your credit profie if you are a Buyer - not a Seller

Sep 14, 2008 02:34 PM
Michael Wright
Re/Max Right Choice - Westport, CT

It could cut down on the amount of deals that fall through.  But if the agent has done his/her homework then they usually have a pretty good grasp on how qualified a buyer truly is. 

Feb 16, 2009 04:43 AM