Home Buying in Lansing>Question Details

Lookin2buy, Home Buyer in Lansing, IL

Can a realtor DEMAND you only use one of the banks they recommend AND only accept 25% down payment or no sale?

Asked by Lookin2buy, Lansing, IL Mon Aug 16, 2010

We have run into a realtor that is representing a Foreclosure property and he is a piece of work.
He wanted first for us to put 50% down, but this house needs some work and we are going to need that cash to do some repairs on the house.
Now he says he won't go lower than a 25% down payment AND we MUST use one of the 3 banks he recommends or he will go to CitiMortgage and tell them he doesn't recommend us to purchase this property.

Says that it doesn't matter that we qualify, it only matters if he says to them that we are recommended purchasers. Basically telling us that we have to purchase this house exactly as he states or we can't buy it.

We feel this is extremely unethical and pushy. We don't understand why we can't use whatever lender that gives us the best rate, be it local or elsewhere. Also, CitiMortgage wasn't even one of the banks he recommends even though he is the lister with them for this property. He is a ReMax realtor though.

Help the community by answering this question:

Answers

10
BEST ANSWER
First of all it doesn't matter what company he works for. We're all basically independent contractors.

Second. Are you dealing directly with the listing agent on this property? If so then you're really not getting 100% representation. He is required to also "disclose" to you that he is working as a dual agent. He "must" disclose that to you by this point.

Third. He cannot demand that you use his mortgage broker and he cannot tell you what you need to put as a down payment. As long as you qualify and you can present a pre qualification letter from a lender of your choosing then you're good to go. In many cases they may request that you speak to their lender of choice just to get a 2nd opinion, but you are not required to use them.

If you still have these problems dont hesitate to contact his local board of Realtors and speak to someone in Professional Standards.
2 votes Thank Flag Link Mon Aug 16, 2010
Brandon's answer is perfect surrounding your ability to select a mortgage lender. No seller can demand that you work with a particular mortgage lender. Years ago I used to work for a national home builder with their own mortgage company. As I am sure you are aware, many of these national home builders "urge" you to use a certain lender (normally their own) but they can NOT require that you use them.

Builder use incentives to entice you to use the mortgage company they own but they can not require that you use them. The same holds true in this case. They can not require you use one of the 3 bankers he is suggesting. I suggest you higher an agent to represent you and provide them with a solid pre-approval from your mortgage lender and see what they say.
1 vote Thank Flag Link Mon Aug 16, 2010
Hmmmm...I'd run not walk and find an agent pronto to represent YOUR interests instead of using one that is obviously ONLY representing the interests of the lender/seller.
1 vote Thank Flag Link Mon Aug 16, 2010
It sounds like the realtor is breaking RESPA laws (by his actions I am assuming he is receiving a kickback from the 3 banks he recommends), not to mention realtor ethics.
If you really want this house, I would hire a buyer's agent to negotiate this transaction. Either way I would file a complaint with the Lansing reality board, the attorney general and CitiMortgage.
1 vote Thank Flag Link Mon Aug 16, 2010
The last thing you want to do is rush into a house that's not right for you. Consider renting if an agent can't help you find YOUR perfect house.
0 votes Thank Flag Link Thu Aug 26, 2010
Lookin2buy - I am just giving a little advice here as most of the agents hit it on the head. I am embarrased as a Realtor that another real estate agent has acted in such a unprofessional manner. Please make sure you report him, talk to his broker and follow up with the local board. Agents like this should have their licenses revoked indefinatley. Sorry you had this experience. By the way you didn't sign anything with this so called listing agent did you. Make sure when you find a buyers agent that you tell them exactly everything that has happened and let them talk to the listing agent before you put in an offer. You want to make sure that the listing agent doesn't try and say that he/she was the procuring cause of sale. Your agent will know what I'm talking about. Good luck and I'm sure your experience with your buyer's agent will be much more pleasant.
0 votes Thank Flag Link Thu Aug 26, 2010
Yes he does sound a bit pushy, but he is the lister and works for the bank.

My name is Cathy Hallow, and I live in Lansing and I am a Buyers Agent. I have been a Realtor since 1993 and I do sell alot of Foreclosures. I worked for ReMax for 18 years and now I am with Realty Executives.

As a Buyers Agent I work just for you, and will help you get the home at a fair price.

I can help you out, please call me 708-710-5374.

Also , many times the bank owned will insist the buyer pre-qual with a preferred lender, but the Buyer can use whoever they want to finance the home.
So give me a call or e-mail me at cathyhallo@aol.com

Thanks
Cathy hallow
0 votes Thank Flag Link Thu Aug 26, 2010
If you want to give me a call, I have 2 good Realtors in that area and I would be glad to give you their information. You can call my cell at 708-710-1859.
0 votes Thank Flag Link Tue Aug 17, 2010
Many thanks to all of you for your answers! We are moving to Lansing in 2 weeks, but my fiance' is already there as of Sunday and started his new job today. I had him go over to this property that I found and he went and looked at it from the outside and called the listed realtor for the property and the guy gave him the lock box number to look at it inside.

We're under the gun as we only have 30 days to find a place per our relocation package and I've been looking online for weeks now and have researched the areas and found a good site that tells crime statistics, demographics, polluters etc. We've greatly narrowed down the areas we want to look in and Lansing seems very safe.

He drove by the house all different times yesterday and evening and people seem comfortable walking after dark in the neighborhood.

The house also appraised for $60k more than the bank is asking, yet the other houses there are still in the $100's or higher. There was no mold and it is a brand new listing REO. We really do like the house and see it as a good investment.

We will definitely be reporting this realtor to all sources mentioned. Now we just need to find a buyers agent.

Unfortunately, my fiance' will be all tied up with work the rest of the week and has to fly back here Thurs night. and won't be back in Illinois til we move the end of the month.

Thanks again for all of your comments and help! It's much appreciated! If anyone is a buyers agent in the Lansing, IL area please contact us here!
0 votes Thank Flag Link Mon Aug 16, 2010
What does your agent say? In fact, why are you in direct communication with an agent representing the seller at all?

Sometimes lenders who own properties do impose seemingly odd or harsh requirements. But you really shouldn't be directly involved in that. Rely on your own Realtor.

And if you can't get around the agent (50% down? Wow!), look for some other properties.

Hope that helps.
0 votes Thank Flag Link Mon Aug 16, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer