Mortgage Lender Disclosed info to sellers agent

[deebee7]

Maryland: We are in the process of buying a new home. When we sent an offer to the seller, the seller's real estate agent called the mortgage company to see if we were qualified for a loan at that amount. (although we had sent a prequal letter) That part I understand, what I have a problem with is that she asked if we were qualified for 380K, which was over the 372 offer we had made, and then continued to ask the lender if we were qualified for more and the lender told them definitely yes. The realtor then called and got a copy of our finance statement, returning to the sellers saying she felt we could afford much more than our offer, so they should counter with something much higher. At that point, we had lost all negotiative power. It is my understanding that the lender should not have indicated whether or not our allowance was higher than what we had offered and that the realtor was out of line by requesting our financials as we were prequalified by a major financial institution. We feel that our right to negotiate was nullified by the actions of the lender and the other real estate agent. Any thoughts?

[PghREA]

First of all , none of this should have happened.

I would file a complaint with the lender and the local Board of Realtors. Both the lender and the Realtor are at fault. I would definitely get a new lender.

Personally, I would withdraw the offer but, if you still want the house, tell them that because of the listing Realtor's misconduct, you will not negotiate higher than the 372K.

[tranquility]

A "financial institution" which turns over "personal financial information" to a "third party" without a written release is in violation of federal law. I put quotes on the above as each has a specific meaning under the law and more information would be needed to determine if there were a violation. I'm not sure, but I believe there is a private right of action with a statutoy damage amount per violation. I think you might find something using the first three quotes as a search string or Graham-Leach-Bliley.

[HomeGuru]

I agree as various provisions of the Privacy law has been violated by the lender.
And the Realtor violated provisions of the Realtor Code of Ethics and Standards.

[Gadfly]

This should have never hapened, but you did NOT loose your negotiative power. Your price is your price. You could be able to finance a million bucks, but if the house is only worth ten thousand, then no deal exists. What is happening to you is wrong, but your choices are to either stick to your guns or go find another house.

[NandCo]

Originally Posted by deebee7

Maryland: We are in the process of buying a new home. When we sent an offer to the seller, the seller's real estate agent called the mortgage company to see if we were qualified for a loan at that amount. (although we had sent a prequal letter) That part I understand, what I have a problem with is that she asked if we were qualified for 380K, which was over the 372 offer we had made, and then continued to ask the lender if we were qualified for more and the lender told them definitely yes. The realtor then called and got a copy of our finance statement, returning to the sellers saying she felt we could afford much more than our offer, so they should counter with something much higher. At that point, we had lost all negotiative power. It is my understanding that the lender should not have indicated whether or not our allowance was higher than what we had offered and that the realtor was out of line by requesting our financials as we were prequalified by a major financial institution. We feel that our right to negotiate was nullified by the actions of the lender and the other real estate agent. Any thoughts?

I have been in your shoes. If the spoke to the mortgage BROKER, then that is ok. About the sharing private financial sheets, that might be a no no.

BUT, if they spoke with your LENDER, not the BROKER, then that is a violation in itself. That is what happened to me. The person is did it ended up losing his company and bankrupt.