We have several transactions that me and my team are working on currently where we’re discovering loan officers and mortgage brokers who are sorting out credit issues while their buyer client is under contract. What we’re all wondering is how did these folks truly get “pre-approved” if they didn’t have the right score to begin with?
To me, it almost seems to be grounds for a seller to cancel a contract if the buyer wasn’t up front with the information. However, the scarier part is that we’re finding out many of the real estate agents working with these buyers ALSO didn’t know that this was happening.
In many other instances of a real estate contract in WA State (note: I’m not an attorney) this would likely be grounds to terminate because the buyer is in breach based on the fact that they wouldn’t actually qualify without the collection payoff and rescoring process.
So, why aren’t potential buyers choosing to just clean up their credit and THEN go buy a house? I’ll be investigating this further…
