Freddie Mac no longer allowing Incs and Trusts to purchase short sale properties!!!
Replies to This Discussion
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Permalink Reply by Smitty on
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Beneficial interest transfer is not the same as property transfer, however it really doesn't matter because they aren't allowing TRUSTS to buy property right?
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Permalink Reply by Joshua Gayman on
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Donna,
It's not that Freddie Mac WON'T allow it, it's that the employee who looked at the file believes he cannot approve it. I am sure if you get the right message(the numbers/value) to the right person at Freddie Mac, you can get that thing approved. Otherwise, you will need to just re-draw the offer under the buyers name and then they can change title to themselves after they close. It won't take as long as before now that you can replace buyers in equator with BofA
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Permalink Reply by Donna McClelland on
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Hi Joshua,
What actually happened is BofA approved our short sale and sent it off to the investor for the stamp of approval. We did exactly what you suggested, however - the buyer is buying the property in his name instead of through his corporation. Do you know how long it takes to go through the process with a new buyer? When I told the negotiator that we wanted to close this month, he made it sound like we'd be lucky to close by the end of Oct. That's unacceptable.
Thanks!
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Unfortunatey, approval from BofA without the final stamp of approval from the investor doesn't mean squat. It is not until you have a short sale approval letter with an accepted short payoff amount and a date to close by that you are approved. And even then, BofA reserves the right to change their mind at any time. It's silly, but is what it is..
If you get to the right person with the bank they may allow you to move forward with the contract the way it is. If not, then get moving right away. I haven't had to change buyers with Bank of America since they implemented the new change buyers system in Equator, but from what I have heard from others in my network is that you should expect 2-4 weeks to get back to where you were with the previous buyer. Like all short sales, you can speed up the timeline to approval and close by staying on top of the negotiator and escalating to the right contacts at the bank if your negotiatior is not doing the right things or is taking up too much time processing.
Hope this helps!
J
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Permalink Reply by Donna Cook on
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Are you absolutely sure they allow LLCs? I just had Freddie deny my buyer who is an LLC. Where does it state they will accept LLCs? I want to give it to my negotiator.
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Donna, push back. Ask for clarification. I'm having a hard time believing ANY of this would happen. Buying in trusts, llc's, inc's is a common real estate practice. I can't wrap my head around this.
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I called Freddie directly and they said they didn't "think" they accepted LLCs. I had an agent on the buyer's side call Freddie and they said they DID! Does anyone have a supervisor's name and contact info for Freddie?
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Hi Donna,
I never got anything in writing, but my negotiator at BofA said that Freddie would allow LLCs because "usually they are just individuals or small companies". I know, it doesn't make a lot of sense, as trusts are usually just individuals, too.
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Could you possibly ask her for clarification on this new ruling because I am getting the royal run around from Freddie. Maybe she can lead us all to the document or email or whatever was put out there recently by Freddie that is so ambiguous that no one can figure out .
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Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on
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Do you have a contact for Freddie Mac escalations on short sales. Servicer is Wells Fargo. Not escalating. Foreclosure date getting close (don't know how close) Need to go direct to Freddie Mac. Not my short sale, but told negotiator I would ask and see if we could get a contact and phone number.
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