Why REO listing agents require prior pre-approvals from their mortgage brokers?
Thanks everyone for responding. I agree with Steve that supplying more financial info to REO appointed mortgage brokers puts one at a disadvantage. Additionally, unless I am missing something, I see other *conflict of interest* issues for appointed brokers and REO listing agents to seek advantage from such deals. Here is a scenario: First lets consider the appointed broker. Imagine this, I called the broker about my pre-approval and among initial questions, she asked *how much* I was planning to offer for the property. If I said $xx, the broker can potentially tip *their client (the buyer)* to slightly outbid my offer. Now lets consider the REO listing agent. Imagine that the REO listing agent is also a buyer agent. In such case, the agent may use information to unfairly benefit *their client (the buyer)*. I’ve been in a situation where a REO listing agent discouraged us from submitting an offer that was fairly close to the asking price. Although I don’t yet know the final sale price,
