Question Details

Kawain Payne,…, Real Estate Pro in Long Beach, CA

If buyers are cross approved by BofA and Wells Fargo, why should L/A require that they be cross approved again by his preferred broker?

Asked by Kawain Payne, Realtor, Notary, Long Beach, CA Wed Jun 6, 2012

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3
The 'big banks' routinely manufacture obstacles that will prevent the sale of real estate. They pretend to be in the lending business, but they are really in the denial of service business that has proven so productive for the insurance company.

The local lenders with whom I work will have the details regarding a property I have for sale. They know the insurance situation, the HOA financial and have all the ducks in a row. All that is needed is a qualified buyer. Ultimately, Bank of America, Wells Fargo or Chase will deny the loan in the last week of the process. Having bank B ready to roll is essential. In essence. FINANCING IS AVAILABLE and that changes the situation for the SELLER significantly.

Anyone coming into a deal with an "F" rated bank, should notice the red flags.
If you're not working with a local lender find an "A' or 'B" bank by entering your zip on city in the following link: http://www.BankingGrades.com

Best of success,
Annette
http://www.FloridaRealEstateMadeEasy.com
1 vote Thank Flag Link Fri Jun 8, 2012
They really should not as it is technically steering... However in some foreclosure or short sales this is requested by the Bank or for 203k type loans. Pre-approved by that bank does not mean your client must use that bank!
1 vote Thank Flag Link Wed Jun 6, 2012
As you know, we act on seeler's behalf.
Often, sellers want to double make sure that your client is approved.
They have a loan officer they trust and rely on his professional expertise to "evaluate"
your clients' approvability, so to speak.

You don't have to work with their mortgage person.
To get the deal, it's probably better to agree to this.

However, sometimes, it's a good idea to have your buyers meet the sellers and show the approvals to the sellers directly right there and then - this way it's harder for the sellers to say no.
Most likely, they'll not require yet another approval for already approved buyers...

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Thu Jun 7, 2012
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