BiggerPockets

So I tracked down the seller of a home she walked away from. Its right in my farm area. Perfect short sale candidate. So i'm 10 minutes into the conversation with the seller and I'm feeling the love. She says the magic sentence "What do you need from me" . YES! in the bag right? WRONG. I tell her I just need her to return the Authorization to Release Information form. She says "That asks for my SS#...you need my SS#?" Me: Yes. Seller: I don't feel comfortable doing that. Me: This is common practice. The lender will not allow me to speak with them about the property without the authorization form. I assure you that I would not risk my business or personal reputation by doing anything inappropiate with your personal information. Seller: I dont care. I dont know you and I dont give my personal information to people who send me letters in the mail and show up on my doorstep.(I think to myself "hmmmm...she has a good point...how do I respond to that?) Me: I tell her that if you call an attorney and ask them about the short sale process they will request the same information. The bank will not allow me to speak to them without this info. Seller: I'll call you if I'm interested. (ouch...insert image of deal flushing down the toilet bowl). Actually she said she would ask some people about if this were on the up and up or something to that effect. My questions: a) Can I submit an Authorization to Release Form to a lender without the sellers SS#? b) Is there a way to sign a legal document in front of an attorney that basically says I will use the sellers personal information soley and exclusively for retrieving information from the lender about the property? Maybe that would make her feel more comfortable? I'm open to any and all suggestions on this issue. So close, yet so far...

Michael, some lenders ask for the full ss # but most have alternative questions they can ask. The thing is most lenders also ask for tax returns so if the homeowner is squeamish about the ss# then how the heck are they going to give you tax returns (which GIVE you ss #)

I have a separate document that lists out all the things I require and if they don't give me something on the list I tell them there is little I can do to get a short sale done. They either want it done or not...tell them the ball is in their court but you need basic info to submit with the package.

Michael,
The answer to this question is simple. You don't need the SSN, just the LAST 4 Digits of their social. make sure you indicate that on your form. I would not give some stranger my social either! Come to think of it, I would not give a friend my social!

@na na - I her you and I think thats the way i'm going to go however when I've called lenders previously the menu driven phone system always asks me to enter either the account number or SS#. The user was so salty the last time I asked her for her SS# that I'm trying to give her a chance to cool down even though that was weeks ago. I've never had a seller react so abruptly and negatively when asked for a SS#. They usually are happy someone like me is showing up to resolve the issue!

Ask her to call her lender and ask what is required for an authorization to release information??

If they say the ss number then she can fill out your name and send in the document.You don't ever have to see it.

It's just like people getting loans for a mortgage.When I show property people don't want you knowing their net worth or income and how you spend it etc.

I tell them I don't need any of that just the approval from the mortgage company.That is between you and them.

When I did residential short sales sellers would give me ss for authorization but I am a real estate broker.While not full proof I did have to pass licensing and a criminal back ground check among other hoops.

Some investor just showing up at a door asking for a s.s. number could be a criminal,scammer,whatever.

Michael,

Another way to go about this is to provide her the Authorization form and the fax number to the lender. Let her fill out the form and send it in. Once that is taken care of, she can provide you the account number. You will not need her SSN at all, doing it this way.

Up until June of last year, I negotiated short sales and never had a customer refuse to provide their SSN, but I also never came across a lender that mandated I provide it to them a second time, if they received it on the Authorization. Just be aware and make her understand that some lenders only accept the Authorization for 3-6 months. If it takes longer than that, they mandate receiving a new Authorization. So, she may have to provide a new one all over again, given this scenario. But, she would have to re-sign one anyway, if that scenario came to pass.

Once I get back into the states from serving our country again, I will be putting my knowledge of short sales, rehabbing, landlording, etc back to good use. For now, I can only talk about it on this site.

Thanks Cliff. Kudos to you for serving. I wish you a safe and speedy return.