Just how much information about the Buyer is the Selling side allowed to ask for?

By
Real Estate Agent with Painesville and Eastern Lake County OH #2004015120

I have a question about a transaction and am wondering if you have run into this situation.

 

I am representing the BUYER in a short sale. He has been preapproved and the source of his down payment funds has been verified by HIS LENDER. This information in the form of a letter was sent to the SELLER'S AGENT.

 

The SELLER'S AGENT told me the bank holding the mortgage is not satisfied with the letter from the BUYER'S LENDER and they want to see the actual bank statement showing his source of funds.

 

*****

Following is what the selling agent is telling me...

 

"They (the bank) are asking for a bank statement. Not sure what the problem is - he just has to show $xxxx, its not like they want to dig into his life savings!?!?
I spoke with my broker about this, there is nothing stopping a seller or seller's mortgage holder from asking for bank statements. Sorry but this source of funds request for short sales has been in effect almost two years."

*****

 

I have a problem with this because the SELLER'S agent nor the mortgage bank are obligated to keep his information confidential. Please tell me if I'm incorrect.

 

 

 

Posted by

Christine Hart Howlett
Keller Williams Greater Cleveland NE
Cell:  440-812-4001
eMail:  Corkyhart@hotmail.com

ChristineHowlett.com

 

 

 

Comments (4)

Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Christine, I don't think there is any prohibition on the information a lender who owns the property in question can ask... as long as it is legal.  So... a bank statement would be within their right. Some bank-owned or short sale lenders are asking things like this. 

I don't like it, but... if they are the short sale lender... they can require anything they want... more or less.

However... I would think that as a Realtor, or even a lender, for them to disclose personal information to the public about a buyer's information that should be kept confidential... I would think there would be some liabilities for that.  Just my opinion.

Oct 12, 2011 11:22 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

By the way... I don't think there is any reason you cannot take the Members Only off this post, and make it public.  And... that would also take care of your requirement to write a public post every ninety days.  Just a thought.

Oct 12, 2011 11:24 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Often it depends on what the lender's letter says.  They are often simply not sufficient.

When we write an offer, short sale or other, we provide the seller with a Buyer's Financial Statement.  Rare that we are asked for more.

If asked, we'll send the bank statements with the account number redacted. 

 

Oct 12, 2011 11:28 AM
Christine Hart Howlett
Painesville and Eastern Lake County - Painesville, OH
Keller Williams Greater Cleveland NE

Karen Anne, thank you for commenting.  I don't like it, but if this is considered normal, and ethical, I guess we're going to have to conform and give them what they want.  It just goes against my grain to share so much information and ticks me off that there is no trust on the selling side.  You learn something new everyday.

Oct 12, 2011 11:36 AM