Why Are You Questioning My Client’s Lender?

Ed I have seen this with REO insisting that the Buyer use a certain lender .There is not a choice they must use them or they wiill not concicer you offer .It is usually always the mortgage company that is holding the mortgage on the prorety

Ed, I saw this a lot with B of A and thought it was a form of steering too. The information stated they had to get prequalified through their lender in order to get the offer submitted. In my opinion, why should it matter as long as they qualify? This looks like another example of making up the rules as you go along type scenario.

Ed.....they want to know how much play there is in the buyer's qualifications so the bank can counter offer.... that's just wrong on so many levels....

Ed, that is happening all the time here on REOs except for Freddie loans...it really is all wrong...let's have a level playing field, please.

Ed I have run it to that a few times.  The ones that get me though are the ones that I have been working with a Borrower for months to get them to where they can purchase a home, and then they go to a Realtor that steers them to someone else.  Those don't sit well with me at all.

Something is terribly wrong in River City Ed and it stinks!

Ed, I've also experienced this especially with some RELO companies...I've had a couple of clients really get annoyed at this, unfortunately they have little choice if the want that particular property.

Ed that is understandable in that situation, but some Realtors go far beyond that.

This is still going on here. If the buyer doesn't use the lender they dictate, they are not the offer picked.

Hey, Ed!  I included this post in Last Week's Favorites. 

And I felt guilty when I read it, because I've made buyers go to my favorite loan officer if they came in with a BigBank lender's letter.  A couple of the big guys have given us so many problems that a lot of agents here are doing that. 

Have a great week.

Ed, I hate it when i see this type of proviso in the MLS as well.  I like your idea of having your trusted loan originator call the loan officer at the mandated bank.  I hope that's working well - I think I may give it a try.  Otherwise, it most definitely seems like steering. 

Ed, I agree with Barbara #3 on this one. I read your response to Barbara, however if the REO agent and the lender are close they are still going to find out how much play the buyer has.

Ed, you are right - I do not like the practice of checking with a specific loan officer for an REO purchase. Though this had happened once where a listing agent asked me to talk to a specific lender - even when my buyer was working with another lender. 

Despite telling the agent that this is just a check, the lender ended up promoting herself where I had to cut off (it was a conference call with my buyer and listing agent's lender. Of course we made it a point not to run the credit check again - or buyers would have preferred to let go the home. And my question would be - did listing agent do the due diligence for his client by asking the buyer to go through a specific lender?)

Ed: That's a good point. There is such a things as overstepping the boundaries. I've seen that every once in a while. Thanks for the post!

Everyone has a favorite lender.

If you do a volume business, there is comfort in knowing "you guy" has checked out the buyer and has given the OK.

Not a bad practice if you can pull it off.

Phil

I found your blog from Patricia Kennedy's 'Favorites' this week.

Its happening more often than the listing agent is calling about our clients approvals. I dont mind the calls at all, especially with those that are very strong credit/asset wise. Im sure its more frustrating to go through the process, only to find out that there are serious issues with the buyer which could have been found early on in the process.... and if there were multiple offers at the time... better for the listing agent (or REO agent) to ensure the buyer is solid. We welcome the calls.