Q: Is it legal for a seller's agent to contact buyer's mortgage broker for info. about buyer's financial situation?
Is it legal for a seller's agent to contact buyer's mortgage broker for information about buyer's financial situation prior to accepting an offer? We just put an offer on a home and found out that the seller's agent completely bypassed by real estate broker and contacted my mortgage lender last night to question our finances.
A:
Is it legal? Its not a crime. Why would your mortgage lender be divulging any of your financial information to a third-party? Mortgage companies are not supposed to do this unless you gave an authorization.
I cannot think of why the sellers's agent would be doing this but I have not seen all of the documents. Usually sellers do not do this; they ask for pre-qualification letters from you which you get from your mortgage lender to show that you are qualified to buy the home.
You should be discussing this with your real estate agent if you have one or a real estate attorney. Otherwise, you might want to check with the real estate licensing board and file a complaint if this is improper. I would check also with your mortgage company and find out if any information was actually divulged by your lender and why it was divulged. Its not a crime to ask for information but if the mortgage company was not allowed to disclose it and did so then you have an issue with the mortgage lender and you should contact the commissioner of banks about that.
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