Financing in 10001>Question Details

Natalie, Home Buyer in 10001

If a seller tries to obtain a loan for the buyer due to the mortg contingency, who does the lender work 4? Who is the client-confidentiality between?

Asked by Natalie, 10001 Wed Apr 20, 2011

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6
Joseph C. Hastings’ answer
Hi Natalie. The way you ask your question brings up more questions. The way I read it, it appears you are really looking for seller financing as opposed to getting your own loan. Perhaps you don't have sterling credit or a good downpayment hence, the seller financing.

If that's the case, I highly doubt the seller will hold paper for 30 years. The mortgage pros below have your answer. I just had to comment as the question seemed odd. Good luck.
0 votes Thank Flag Link Thu Apr 21, 2011
The Buyer -

The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
0 votes Thank Flag Link Thu Apr 21, 2011
The Loan Originator has a fiduciary responsibility to the Buyer --- only! Nothing personal can be discussed with the seller.
There are no exceptions.
0 votes Thank Flag Link Thu Apr 21, 2011
Is there a reason why the buyer can't obtain a mortgage on their own? Is there a problem with the seller's property obtaining a mortgage? Is the seller trying to get buyer to take over their mortgage or hold the paper?

A seller doesn't want to lose the buyer's deposit due to the mortgage contingency.

Mitchell Hall, Associate Broker
The Corcoran Group
Web Reference: http://nycblogestate.com
0 votes Thank Flag Link Wed Apr 20, 2011
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
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The lender works for the bank or the finance company who's loans he/she is selling. However, if you are a buyer and having the seller apply for a loan on your behalf you are giving up some confidentiality by providing the seller private information and probably authorization to run credit reports etc. It does sound like an odd arrangement and I would wonder why you would enter into a deal like that but hey, its NY.

Sami
917-767-7248
0 votes Thank Flag Link Wed Apr 20, 2011
Hi, Typically if a buyer is working with a loan officer the confidentiality is between the buyer and the loan officer. I'm not sure I understand your question "the seller tries to obtain a loan for the buyer due to the mortgage contingency"? Typically a mortgage contingency is in place to protect a buyer in case they can't get a mortgage. I'm wondering if you mean the seller is going to hold the financing and the buyer will pay the seller, but not sure. Feel free to clarify.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Wed Apr 20, 2011
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