It would be a breach of the listing agent’s duty to disclose their seller’s personal financial information, so no, they shouldn’t disclose that their client is behind on payments.
On the other hand, if short sale approval is needed from the lender or approval to sell from a bankruptcy court, the contract should have a disclosure indicating that lender approval or court approval is required in order to complete the sale.
Is the seller agent supposed to disclose that the seller is behind on their payments and have an NOD?
The seller’s agent had checked with the lender before putting it on the market and the lender informed that agent that the owners had plenty of time and can just do a payoff after sale of property.
Depends on the state. However, the NOD is a public record and would show up on the prelim. It’s the buyer’s responsibility as part of their due diligence to order the prelim.