Tenant Preapproved by bank to buy my house. Before signing contract loan officer offers client several other bank owned foreclosures. I lose deal.

Asked by Erac5226, San Diego, CA Thu May 16, 2013

Is this practice normal and is it ethical?

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3
Bruce Lynn, Agent, Coppell, TX
Fri May 17, 2013
Probably not normal, but not sure why it would be unethical?

Why should the tenant only consider your house and not all houses on the market?

The loan officer's loyalty is likely to their employer, not to any seller, and perhaps not even to the buyer.
0 votes
BHHS- Don Jo…, Agent, San Antonio, TX
Fri May 17, 2013
No contract no deal. If the loan officer was not showing properties owned by his employer, in Texas he may have been violating the license act if he doesn't have a real estate license. Loan officers are not licensed to practice real estate usually.
0 votes
Steve Parsons, Agent, Salisbury, MD
Thu May 16, 2013
Did you have a signed offer from the buyer that you accepted? Did the buyer put an earnest money deposit on your property when they made the offer? If you had a verbal agreement and the buyer went to the bank for a loan, the bank preapproved them the an amount, not an address. They can offer other properties the buyer may be interested in that may better fit their budget. Now if you have a signed agreement with an earnest money deposit, you may be entitled to the deposit if the buyer backs out.
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