Can a seller or listing agent force us to use their lender?

Question

We live in GA. My wife and I are looking at a bank owned property (REO) that is listed with a real estate agent. We have our own loan officer and have our funding/financing already in place. Remarks in the listing say that we must submit a pre-qul letter approved through their lender with any offer. We can certainly provide a pre-qual letter with OUR lender (Countrywide), but we have no interest in using their lender, OR having our credit report pulled another time. Can they refuse to look at our offer if we ignore this request to go through their lender? Is the listing agent required by law to submit any offer received even if it does not comply with their lending request?

Answer 1

It sounds like that their lender just has to approve your pre-qual, not necessarily pre-qual you for that lending institution.  If that's the case, your letter from Countrywide should be fine (unless, of course, they are leary of Countrywide after all the trouble they've had).

The listing agent should submit any offer as long as it is reasonable.  However, this seems like something that real estate agents and loan officers should be duking out behind the scenes.  IMO.

Answer 2

happens alot with REO's - you can have your present loan officer submit documents to the sellers lender and then it will go away - the seller is trying to see if you're really truly prequalified - that's all - do it all the time - have your agent submit the offer and have your loan officer contact the sellers agent to see what documentation they want - once they see you are solid with your financing then they'll back off - this happens everyday - do that then you can all get back to the actual negotiations (good luck) I sure hope since your looking at a deal with a bank that you have a Realtor on your side to represent you - if you don't - go get one quick then the sellers agent will stop giving you the run around

Answer 3

That is NOT legal.

Period.

Tell the Realtor that you will call the Real Estate Commission and the bank that you will call the banking commission.

It is also a violation of federal lending laws.

They CAN use it as a condition to pay closing costs and other conditions, but not for a sale outright.

The lending agent is required PER THEIR STATE LICENSE to submit any and all offers...so I am wagering that this is some BS attempt at the agent to get an offer that will close.

PS: GET YOUR OWN Realtor...that way you have someone helping you that KNOWS the laws b/c they sure as heck won't give you a better deal for not having one..and the listing agents gets their FULL commission.

Answer 4

They CAN force the prequalification and it is actually standard practice.

They can not force you to actually finance with them though.

Certainly they can refuse to look at your offer if you do not meet their qualifications.    The listing agent is not required to submit your offer since the seller has already given instructions not to waste their time and fax paper.

Answer 5

You can not be forced to use the lender that seller specifies. That is illegal.

Answer 6

they can NOT force you to use their lender, but they can force you to be prequalified with their lender

if that is a condition, they can ignore your offer--direct realtors not to submit offers not meeting that requirement

Suggest you submit offer with your lender's prequal L and see what happens--usually works

They don't have to sell to you just because you're interested

Don't confuse law and ethics in what a realtor is required to do.

Answer 7

You can use whomever you want - by law, however in this case Countrywide is covering their butts, all you have to do is qualify with them, it doesn't mean you have to use them, nor give them any money for the qualifying.   It's common.