Thread: Can the bank of a bank owned accept/reject based on the buyers lender?

I am a first time home buyer and recently submitted an offer on a bank owned property. The listing agent's notes had a vague requirement to meet with a Loan Officer of a specified bank even though I was approved through my lender already.
I contacted the specified bank and they would not approve over the phone and required me to come in. I was book at a conference the next day but wanted to get my offer submitted right away so my wife met with the Loan Officer. She was in for 3 minutes. They gave her the rate and told her to have me call if I wanted a loan through them. My wife asked if any paperwork was needed for when my offer was submitted and they said no.

I called my agent and said that I had met with the specified bank. She called the listing agent and he said they needed a letter of explanation of loan approval, which is what we thought we we supposed to get when we met with the Loan Officer.

I contacted the person My wife had spoken with at the bank and she said that the listing agent was wrong and that a form was not need to attach to the offer when it was submitted. She said she would contact the listing agent to set it straight. She called back and said it was all taken care of. Meanwhile I contacted my agent and asked her to verify that our offer was being submitted.

The listing agent said we could get the letter we needed through another Loan Officer of the same specified bank. We went through them. That Loan Officer said we would not get an LEO if we were not going to get the loan through their bank and it would be a waste of time for them to do so. That Loan Officer also said that the bank would accept an offer over ours, even if it was less but through their bank!

[FONT=Tahoma]Is this even legal? It doesn