UPDATE *** UPDATE *** UPDATE *** See the bottom of this post.
I've been showing a ton of property lately. And while showing property, I am seeing it more and more in the LISTING AGENTS' REMARKS: Submit offer with PRE-APPROVAL letter from XYZ BANK, with FICO SCORES included, or your offer will NOT be submitted. (This is NOT happening in my local MLS, but instead from an Out-of-Area MLS) who lists homes in our mountain area.
On a recent offer I submitted for my buyers (on a repo property), they ALREADY had a lender and a pre-approval letter, as I had them do that before we went previewing homes. I included that letter with their offer to the listing agent. Then, THAT agent, or his bank, kicked back our offer DEMANDING my buyers get PRE-APPROVED WITH BANK OF AMERICA/Glendale Branch, or my offer would not be considered.
Is it me, or does this STINK to high heaven??? How can a Listing Agent, OR a BANK, tell MY client they MUST use a particular business/bank? I'm not certain this is even legal. I have a call into both the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.) and the MLS Board where this is happening.
I'd like to hear your comments and opinions.
...I'll also let you know what the legal hot-line tells me once I speak with them.
~ ~ ~
CELL: 909-273-4542 OFFICE: 909-336-9500 ~ EMAIL: KATDELONG@WINDERMERE.COM
*** UPDATE: I just spoke with an Attorney with C.A.R. who did say it is OKAY FOR THE AGENT TO PUT INTO REMARKS that a BUYER pre-qual or pre-approve with a "Certain" lender. HOWEVER, he/she MUST have an agreement with that LENDER, where as the bank has said they will not look at any offers unless buyers follows those requests/guidelines.
However, the Attorney agreed with me that these types of 'REQUESTS" could begin to tick off buyers, thus eliminating some of the buyers buying pool.
I discussed with him my FEAR that some Realtors could be "working" too closely with some of these BANKS, in which he brought up RESPA. GREAT POINT, I told him.
So for now, I guess these BONEHEAD BANKS can get away with this. BUT I am thinking, they'll eventually start screwing up and this issue will one day (soon I am betting) make front page news!