Profile picture for Tired123

Seller wants to see approval letter from buyers lender, sellers broker said no, is this correct?

Wisconsin Offer To Purchase contract it reads "buyer will promptly apply for a mortgage loan? Am I correct that the word "Promptly" is now, within a few days, or is it wait for 6 weeks and apply for a mortgage? I am the seller and this is the mess that I am in now, would have been nice if my agent/broker/agency owner, would have made me aware of this from the get go, and it would have been a big fat NO, am I the only one that this has happened to?
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October 24 2011 - US
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Profile picture for wetdawgs
When selling, we won't sign the offer contract if we've not seen a preapproval document 

Do you have target dates for closing with penalties if not achieved?   That would help the buyer define "promptly".

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October 24 2011
The seller has the right to information proving that the buyer is able to purchase their home so they can make an informed decision.  They also have the right to turn down the offer if the buyer refuses to provide this.  Their agent isn't doing the buyer any favors by keeping their loan status a secret.
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October 24 2011
Sounds frustrating, and like the other agents posting here, I don't have buyer's sign until we know that the buyer has a pre-qualification letter accompanied with their offer. It's pretty standard in California to require that. There is also some verbiage in our contracts that state:

"Within 7 or (you can fill in another number) days after acceptance, Buyer shall deliver to Seller a letter from a lender or loan broker stating that, based on a review of buyer's written application and credit report, Buyer is prequalified or preapproved for any NEW loan specified in 3C above."

Do you have the same limitations in your contract? If so, you can demand a letter or cancel the agreement for non-compliance.

Sorry about the poor experience you are having with your Realtor.
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October 24 2011
Profile picture for Tired123
That is how we started this process when we put it on the market, no letter, no signatures, but was talked out of it by our broker/agent/agency owner, after some counter offers they accepted our last counter on Sept. 15th, as of today they have Yet to apply for a loan, I guess they are waiting for something to delete from the buyers credit report, on the OTP is has 60 days, and yes we did question it and was told "thats the norm" nothing to worry about, what has us ready to hire an attorney about this broker/agent/agency owner fella, is that he lied straight to my face about this issue, never said what this was really about, and he wants 6% from us, for what? his lies? he is also a agent for the buyer, I am so crazy mad at this guy at the moment. not sure what to do...
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October 24 2011
Profile picture for AmyBrick
I agree with the last person who posted.  I am a Broker in California, and we don't present offers until we have a letter in hand (actually, more than a letter, we have a Desktop Underwriting Approval).  Our contracts states that the letter will be given with in a matter of days.  Again, I believe the best practice is to  have the approval in hand from the get go.  I'm sorry you're dealing with this.   In California, we give a "Buyers Notice to Perform", this gives the buyer constructive notice when we need something done.  I would suggest that the Broker who is representing you gives one to the buyer's agent, that would state buyer to have approval with in 72 hours or deal is cancelled.  Good Luck!
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October 24 2011
 
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