In escrow we trust?

DEAR BENNY: In the recent purchase of my first home, I was shocked when presented with a completed form titled "Seller's Affidavit of Non-foreign Status" and asked to initial said form to acknowledge its receipt. What bothered me was that I was being made privy to the sellers' Social Security numbers on the form.

In addition, I was presented with this completed form not once, but twice: once while signing a stack of disclosure statements with my agent, and again several weeks later, during closing at the escrow office! Both my agent and the escrow office attempted to placate my concerns when I voiced them. In today's age of rampant identity theft, I'm surprised to learn the real estate industry can be so careless. Please tell me this is not common practice. --Kevin

DEAR KEVIN: The document you questioned is called a FIRPTA form. That's an acronym for the Foreign Investment in Real Property Tax Act of 1980. Back then, Congress was concerned that rich foreigners -- from countries such as Japan, Germany or Saudi Arabia -- were selling property here in the United States and not paying the appropriate capital gains tax.

So, if the seller is a non-U.S. citizen and the residential property sells for more than $300,000, this form must be used and forwarded to the Internal Revenue Service.

My office conducts settlements here in Washington, D.C., and in Maryland. I checked with the person in charge who showed me the form we use. It is a seller's affidavit, signed only by the seller, certifying that he/she/they are not foreign nationals.

Yes, the Social Security number is on that form, but the buyers in my office do not see that form.

I am not familiar with how other settlement and escrow companies handle this issue. I do, however, agree that there is too much disclosure on the legal documents used when buying and selling a house. Social Security numbers used to be on deeds of trusts (mortgages), which becomes a public document. Hopefully, that practice has stopped.

DEAR BENNY: Almost six months ago, we made an offer to buy a condominium. Our real estate agent called it a "clean deal," as we are paying cash and all closing costs. Our offer was less than the amount the seller owes on his mortgage, so I assume this is called a "short sale."

Our broker has called the listing agent and I have called the lender's bank to try to find out when they will respond to our offer. That lender says they cannot discuss this with me for legal reasons.

My wife and I are anxious, as we really want to buy a home and settle down. Didn't our president get a new law enacted that is forcing the banks into a more prompt reply situation? I heard that they must respond within 90 days. Is there anything we can do to expedite this? --Bob ...CONTINUED

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