Replies to This Discussion

Permalink Reply by Kent Dills on March 4, 2010 at 12:27pm

Hear this all the time from lots of different lenders.

Permalink Reply by Steele V. Propp on March 4, 2010 at 12:53pm

Very common with REOs. Not surprising that a similar procedure would take shape with short sales.

Permalink Reply by Katerina Gasset on March 4, 2010 at 4:30pm

All lenders we have dealt with for years have always wanted the LLC articles. That is standard procedure. They are looking for fraudulent behavior in this case.

Permalink Reply by Donna Baker on March 5, 2010 at 4:22am

Hi Katerina,

This is the first time I have been asked by the lender. I have them on file at the title company. What type of fraud is he looking for? We already know that BOA will not let us flip. Is he making sure it is an arms length transaction. Thanks!

Katerina Gasset said:

All lenders we have dealt with for years have always wanted the LLC articles. That is standard procedure. They are looking for fraudulent behavior in this case.

Permalink Reply by Steele V. Propp on March 5, 2010 at 4:34am

Arms length transaction, yes. Also that this is a legit buyer and properly documented with who is authorized to sign for the LLC.

It is just good business practice for them. CYA.

Steele