"Take Your Pre-Approval And Shove It, You Have To Get One From Us!"

Have you heard of something like that? Many real estate professionals in Riverside and San Benardino California sure have. Banks selling their Riverside, California REO inventory have been saying this in so many words to thousands of people.

So what's the big deal, I mean why does the bank care where the pre-approval comes from as long as its another reputable lender?

Its all about asset recapture. The banks, when they have a loan that is not paying they still have an asset on the books, but when they sell a house through a Riverside, California REO transaction they lose that asset. And banks don't like losing assets.

So what they are doing is basically steering people into their loan programs so they can recapture the asset. We have spoken with a few REO listing offices and they say it happens all the time. Somebody submits an offer with a lender prequal and bank selling the home counters with a "buyer must cross qualify with our lender."

They banks say its because they want to make sure the buyer can actually qualify, but in reality they just want a chance to steal the loan. We don't think it's right at all, in fact it sounds to us like unfair business practices.

With that said, we can't change it and thats the way it is. So your job as an agent it to get your clients into a home. If that means you don't get to use  your "preferred" lending partner than oh well.

All the Riverside REO Listing offices we spoke to said you have a better chance of getting your offer accepted if you have your buyer qualify with the sellers preferred lender. So why would you want to put your buyer at a disadvantage?

Again, we don't agree with the practice and we wish we could do something about it, but we can't. So in order for all of us to make money, lets just work on getting offers accepted and our mutual clients into homes.

Later we can work on getting back at the banks!