I have submitted an offer on a short sale Seller's realtor demands my bank statements on top of my lender's approval letter. Why? Legal?

Asked by ajwatson2004, 80538 Sun Jan 19, 2014

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John Juarez, Agent, Fremont, CA
Sun Jan 19, 2014

You should be getting advice from your own Realtor but the number and nature of your posts leads me to believe that you are using the seller’s agent. Too bad for you, in my opinion. You should have someone looking after your best interest and not someone trying to satisfy two masters and, at the same time, worrying that the sale is in jeopardy for some reason.

I am in California, not familiar will real estate customs in Texas. So…bounce what I say off of a Texas Realtor.

Go ahead and provide your bank statements to prove that you can perform – that you have the down payment and closing costs needed to close your purchase. The seller’s agent and the seller want a legitimate buyer and not a pretender. It is common in our market to insist on what has come to be called “proof of funds” from the buyer who submits an offer to buy a house whether short sale or not. Go ahead and blank out the account numbers. Tell them that you have a right to safeguard your personal information that could only too easily be used by some dishonest person for illicit purposes. They do not need to know your account number. I do not think anyone can put a lien on your bank funds without obtaining court permission to do so. Think about it for a minute…you do not own the seller any money so what would be the basis for a lien?

Good luck. Short sales can be weird.
2 votes
Don't know why a Texas zip was added to my question - I'm in Colorado. I do have my own Realtor but am beginning to question which side she is really on. Thanks for the advice. I'd forgotten about the deposit check.
Flag Sun Jan 19, 2014
By the way, if you gave them a deposit by personal check they already have your account number.
Flag Sun Jan 19, 2014
Stacy Massar, Agent, Rockwall, TX
Sun Jan 19, 2014
The bank wants to ensure that you have the financial means to purchase this home. It is a short sale because the owner did not or their situation drastically changed. They have the legal right to make this request. If you are not comfortable with sharing this information then buying a short sale may not be the right type of purchase for you to make. Purchasing a short sale typically takes a lot longer than a sale directly from an owner. Good luck on your decision!
1 vote
Julie Boyd, Agent, San Juan Capistrano, CA
Thu Oct 2, 2014
How to write a successful Short Sale offer:

In a short sale, the short sale lender is approving the short sale for both the buyer and the seller. The approval would come with your name on it and is not transferable.

So, the short sale lenders ask that the buyer identify themselves as a real person who has the money and qualifications to close, before committing the Banks considerable time and resources to approve the short sale for you.

It is a short sale requirement that you as the potential buyer prove that you have to capacity to close.

I am a frequent keynote speaker on the subject of short sales, for Chase, Wells Fargo, AAREA, NAHREB, CDPE. I am also published on the subject of short sales through ezinearticles.com. I actively sell short sales throughout Southern California and have never lost a home to Foreclosure.

When representing a buyer on a short sale, I know the documents that a short sale lender will require in order to approve the sale, and I include a really nice package for the listing agent to submit to the Seller as part of the offer. This strategy results in a higher success rate on getting the offer approved for short sale submittal, and saves valuable time in getting the short sale submitted and approved. Most short sale lenders will ask that this information be updated throughout the course of the short sale.

If I might ask, what is your concern?

Most of my clients line through a few of the account numbers to protect themselves.

Generally, and experienced agent will write the offer as clean as possible, and a really good agent will counter the offer before submitting it to the Bank.

This simple strategy can save you tens of thousands of dollars in the purchase of your new home!

Now more than ever, who you work with in Real Estate Matters!

1(714)342-1978 Julie Boyd, CDPE, SFR,CIPS
0 votes
Thank you for the advice above! I am a buyer on a Wells Fargo short sale and have been under contract with the seller for 5 weeks with no response from the lien holder. I am stressed out because I don't know whether or not it is Wells Fargo's policy to entertain multiple seller-accepted offers at once or one at a time? The house was under contract 2 months ago WITH seller and Lienholder acceptance (fell thru due to buyer losing job) for the exact same terms that I have....I am the first and, so far I think, only person with seller acceptance. I am just worried that, even though my contract with the seller was done 5 weeks ago, someone else will come in higher and I not have a chance to make a counter. Can you help?
Flag Thu Sep 29, 2016
Gary Geer, Agent, Antioch, IL
Thu Oct 2, 2014
Most likely the seller ( current owner or his lender) is requiring this information to make a decision about your offer. They may have multiple offers on the property. Ask your agent to follow up with the sellers agent. Hope this helps.
0 votes
Keith W Hefn…, Agent, Dallas, TX
Thu Oct 2, 2014
You should get an agent of your own before submitting any offers on properties. Using a buyer's agent costs you nothing, and is so much more beneficial to you.
The seller's agent is insuring that you have the cash to close the deal. He is representing his client, and it's 100% legal for him to ask you for anything. You don't have to give it to him, however his client doesn't have to sell to you either.
Hope this helps.
Keith W Hefner
0 votes
Susie Kay, Agent, Dallas, TX
Wed Jan 29, 2014
Did you talk this over with your agent? What did she/he say? Did you talk to your lender?

Your lender's pre-approval letter should suffice; however, the bank can ask for more proof. They want to make sure that this offer will close as they are already taking a hit.

Susie Kay, Realtor®
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240


Servicing your real estate need is my priority!
0 votes
Don Groff, Agent, Austin, TX
Fri Jan 24, 2014
The only way I could see them wanting to see something regarding your bank statements is if you are a cash buyer and they want to source the funds. As this is not the case I would have to agree that the other Realtor does not understand how the process works. Your personal financial data is your business and only you and your lender need to know those details. Your pre-approval letter should be enough for them to consider and accept your offer.

Hope this helps.

Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference:  http://www.AustinListed.com
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Mon Jan 20, 2014
Seller's realtor is an idiot.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
9yr Veteran navigating Mortgages for wonderful clients.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Mon Jan 20, 2014
You are at the very beginning of the short sale and you are already second guessing the actions of everyone involved.
Everything your agent told you about short sales.
All these documents you signed that stated no one is promising you anything and the bank can be held accountable for nothing will prove to be true. YOU, the buyer, are the most insignificant component in this process. The abuse will increase.
You should exit now and let a REAL buyer, who actually understand a short sale, take your place.
0 votes
VanDuzee Ral…, Agent, Dallas, TX
Sun Jan 19, 2014
If you want to buy a home, the seller is going to weigh your financial qualifications against other potential buyers.
0 votes
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