Short Sale with Seller being an LLC
Dear colleagues,
Would banks still dig into an individual LLC member's finaces in order to determine a short sale approval? And more importantly, can they pursue individuals for the deficiency after the sale is complete?
What are your experiences in such case? If this matters in your opinion, I'm located in Colorado
Thank you in advance!
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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Martin, It doesn't matter who the seller is. It matters who the borrower was. The person on the note. You can be sure that's not an LLC. It's an individual. That's who has to qualify.
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Permalink Reply by Sam on
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What Bryant said is correct in my experience...as an additional FYI - most of the occaisions I have seen where the seller is an LLC, the purchase was originally made by individual who obtained the mortgage, then ownership subsequently transerfered to an LLC for liability, tax or other strategic reasons. In several cases I have witnessed, the short sale bank required the property be deeded back to the individual before closing, so the seller was same as ownership in mortgage origination.
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Permalink Reply by Joseph Alfe on
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Bryant is correct, but the seller better be prepared to divulge the LLC's P&L and other financial information.
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Permalink Reply by Martin Dragnev on
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Great comments! Thank you!
Just as expected our network gives me more confidence and knowledge before my conversation with my seller.
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