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.