SoFaithful

Too Much Information to the Opposition

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How much of the BUYER'S loan information should THE BUYER'S LENDER disclose to the SELLER'S agent?

It's non of their business - even though they might ask if you are approved for a loan, so they know you serious about buying a property. Any financial information you give them, they can size up money they can get from you!!! "If they ask, say I prefer not to say". Then ask them why they are asking.

Over the years I was a loan officer, advised many home buyers this method of negotiating the price lower, it works.

First realize no one is going to be holding your hand. At first everyone is nice to you, they are sizing you up on how much on how much their commissions are going to be.

When you find a home your interested in, set an appointment look at the home, say your interested and you will get back to them. It helps if there is a Realtor, you will save a lot of money dealing directly with the home owner. (You should check out the web site forsalebyowner,com.)

Your offers are going to be 60% - 1/2 1/2 1/2. Take for example of a house listed at $200,000.

Get back them them a few days later saying you are extremely interest in buying the home. But the price is the factor, ask if the will lower the price as your first offer is $120k. This is going to an install to them, but you are starting low. If they are serious a lot selling their home, again nobody is going to hold your hand - they will work with you if they want to sell their home.

Many first time buyers are too nice and have no experience when buying their first home. In today's world, especial here in the USA, homes are a dime a dozen. The Realitor knows that, the home owner knows that, and they are hoping you don't know that.

They come back with a revised selling price at $180k, you then want to set up a second appointment. You should check what homes are actually selling for in the neighborhood. Check out cyperhomes,com to see the value of the neighborhood. When you get there, pay close attention to the structure., plumping, electric, installation, paint, condition of the driveway/walkways, etc... Pay close attention to the next door neighbors (the people living next door, their cars, maintenance, kids, etc..).

On your second offer is going half less then their revised price. You going to come back to them, saying your really serious, your second offer is $150k with the condition of having the home inspected. You are really interested, again you are asking if they are will to work with you to lower the price a little bit more. They will see you are willing to negotiate by raising your offer. If they want to sell, again they lower the price to $170k

A home inspection is going to cost you around $300. This is money well spent. You will get a detailed report (that you don't have to share with the buyer), that can help you identify every more to negotiate the price lower.

After the inspection, you get back to them saying you are ready to make your final offer. Mentioning $160 and you are really to sign a buyers/sellers contract.

On the actual contract, you still want to leave enough room to further negotiate. Say " the selling price is going to bet dependent of the appraisal". The appraisal report not only lists the value and condition for the home, it also as reports on similar homes that are 1 to 3 miles away.

So the final price becomes $165k, what you did was $35,000!! That's $220 less per month on a $200k loan. The savings are huge over the lifetime of the life..........lol...lol...:mrgreen:

Understand the actual numbers are fictitious, I'm hoping you get my point.

Good Luck

...:)

.

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SELLER'S agent is actual want to acquire the property. BIG CONFLICT OF INTEREST, and has done many things to try to make the deal fall apart (like not ever putting the home in pending status, not depositing the earnest money until forced to do it, refusing to respond to the SELLER nor my agent, missing deadlines outlined in the contract).

We were set to close on a particular date. The SELLER'S agent called my lender (the day before closing) and from that moment, the lender 'needed more info' from me. I provided this info. I spoke with lender and let them know the SELLER'S agents actual motives.

Another closing day was set. MY lender and the SELLER'S agent talked. More of my personal detailed information was disclosed to the SELLER'S agent. More info was requested from me. I submitted it. Another closing day was set. It's come and gone. We are now in limbo. I'm trying to find out what/who agency governs privacy in lending.

SELLER'S agent told the seller that since we did not close on the original closed date, that that makes the contract null and void. Is that true?

FYI, I do have an good agent who is going-by-the-book.

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SELLER'S agent is actual want to acquire the property. BIG CONFLICT OF INTEREST, and has done many things to try to make the deal fall apart (like not ever putting the home in pending status, not depositing the earnest money until forced to do it, refusing to respond to the SELLER nor my agent, missing deadlines outlined in the contract).

We were set to close on a particular date. The SELLER'S agent called my lender (the day before closing) and from that moment, the lender 'needed more info' from me. I provided this info. I spoke with lender and let them know the SELLER'S agents actual motives.

Another closing day was set. MY lender and the SELLER'S agent talked. More of my personal detailed information was disclosed to the SELLER'S agent. More info was requested from me. I submitted it. Another closing day was set. It's come and gone. We are now in limbo. I'm trying to find out what/who agency governs privacy in lending.

SELLER'S agent told the seller that since we did not close on the original closed date, that that makes the contract null and void. Is that true?

FYI, I do have an good agent who is going-by-the-book.

So the sellers agent as a little melancholy going on, huh???

As for dates broken - technically you are correct, if it is the sellers fault you do not close by the closing date, you can demand your earnest money back and walk away.

Take for example a buyers fault on not closing - a seller enters into an agreement with a buyer, they give the buyer 30 days to come up with the financing. The buyer gives earnest money to the seller and they take the house off the market. The 30 days comes, and the buyer isn't able to obtain any financing. The buyer can put the house back on the market, keeping the earnest money.

Your case (by your last email), you indicate you want the property as well as the sellers agent. If there was a current contract in place with you, the seller in bound the honer the agreement with you. If the expiration date has come and gone. The seller doesn't have to honor the old contract.

It sounds as you caught up in the mist of politics, between both your agents. Have you considered directly speaking with the seller?

..:)

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So the sellers agent as a little melancholy going on, huh???

Yeah, small town politics at it's worst.:)

It sounds as you caught up in the mist of politics, between both your agents. Have you considered directly speaking with the seller?

:)

The seller has STRONGLY requested that he and I stay in contact because the seller's agent will not return his calls nor does she keep any type of regular office hours. I know this to be true.

The seller says he does not even know how much commission his agent is suppose to get nor exactly what he (the seller) has signed to date. At this point, the seller says that he wants another agent because of the blatant stalling and lying by his agent. He says, however, that he is afraid to sign anything else because he has been in the dark from the beginning.

FYI, I have NOT divulged any information to the seller that would compromise this transaction.

To complicate matters, this home was put on the market because, according to the seller, he decided "at the last minute" to move several hours away. That deadline is looming.

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This does not sound normal at all.

Normally a seller signs a listing agreement that details EXACTLY what the cost is to the seller before the house is placed on the market. The agreement is very specific as to each cost. Also the agent provides a "net sheet" to the seller with an itemized listing of expenses.

The seller gets a copy of all of the documents at the time the listing is signed.

If a contract for sale is signed, the seller also gets a copy at the time it is signed AND another net sheet detailing expenses based on the sales price.

As to the sellers' agent wanting to acquire the property, why didn't the seller and the sellers' agent write a contract prior to putting the house on the market? Why market the property to the general public if the agent is going to purchase the property? This does not sound right. The agent has additional duties to the seller if the agent plans to purchase the property and represent themselves in the transaction.

If you have a signed contract with the seller and you have a title company or an attorney closing the transaction, there should be no issue with the closing date if your bank is ready to close. The agent can not unilaterally change a closing date. If your bank is not ready, then that is another issue.

Is the seller ready to close? Is the title company or attorney ready? Is your lender ready? If these elements are complete, then the closing can occur and the agent can not stop it. Look to your contract for specifics.

I am an agent and have been for 30 years. Something in this transaction does not sound right - but it is not possible to determine without the entire story.

BTW, back to your original question: How much information can the buyers lender divulge to the seller? Not much. The lender can say if you are approved and for how much. The lender has a fiduciary duty to the buyer and can not divulge information to the seller without specific written permission.

Edited by Denita

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Like someone else stated, it really is none of their business. If you have a Loan Officer that is on your side and smart, they will not disclose too much information.

During my negotiations with the Seller, the Seller's Real Estate Agent contacted my Loan Officer. The Seller's Real Estate Agent just wanted to "feel" out my Loan Officer and find out how "legit" my Pre-Qualification was. I got the house because we could close in 15 days and at this time, with all the intense scrutiny, it is rare to close that fast.

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This does not sound normal at all.

BTW, back to your original question: How much information can the buyers lender divulge to the seller? Not much. The lender can say if you are approved and for how much. The lender has a fiduciary duty to the buyer and can not divulge information to the seller without specific written permission.

BTW, back to your original question: How much information can the buyers lender divulge to the seller? Not much. The lender can say if you are approved and for how much. The lender has a fiduciary duty to the buyer and can not divulge information to the seller without specific written permission.

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As to the sellers' agent wanting to acquire the property, why didn't the seller and the sellers' agent write a contract prior to putting the house on the market? Why market the property to the general public if the agent is going to purchase the property? This does not sound right. The agent has additional duties to the seller if the agent plans to purchase the property and represent themselves in the transaction.

That's the question I've had all along. Seller said he had recently heard (HERESY, of course) that his realtor has a shady reputation for 'back room deals'. I don't know if Seller's agent was trying to acquire the property through a third party or what. I don't know if there have been complaints about the agent to the realtor board. I'll just take reassurance in what you said about the amount of influence the Seller's agent has.;)

If you have a Loan Officer that is on your side and smart, they will not disclose too much information.

Nope, they have been pretty disappointing from the being. I suggested to my agent a few weeks ago that we change lenders even before this.

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Sofaithul, do you have a friends and/or family members that have a house? If so, have you asked them about the Loan Officers they used?

My Loan Officer did my mother's loan a few years ago and that is how I found him.

Like any industry, Real Estate can be very shady and I am a big fan of getting referrals from friends/family.

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Sofaithul, do you have a friends and/or family members that have a house? If so, have you asked them about the Loan Officers they used?

My Loan Officer did my mother's loan a few years ago and that is how I found him.

Like any industry, Real Estate can be very shady and I am a big fan of getting referrals from friends/family.

I have asked many, but they have had bad experiences, too.:( I'll keep contacting and asking other friends and family.

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