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HELP* Freddie Mac won't allow sale to Pension Fund??

Posted by Tiffany Cloud on February 16, 2011 at 12:56pm in Short Sale Discussions

I am the listing agent and Wells Fargo has approved our short sale and sent it to investor, Freddie Mac, for sign off. I was expecting final approval today and got this email from the negotiator at WF instead, 

 

"Buyer is under a Corporation.  Investor does not allow short sale under corporation.  Buyer need to be either just in a Trust or as an individual.  Please advise."

 

Has anyone dealt with this before?  Have you found ways around this?  Our buyer is listed as, "XYZ Inc Pension Fund, xxxx trustee"

 

Here is another kicker.... Buyer and Seller signed a WF addendum stating, "The parties agree under no circumstances will the sale contract be assignable."

 

Now What?  

 

 

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Tags: Fargo, Freddie, Fund, Help, Incorporated, Mac, Pension, Sale, Short, Wells
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Replies

  • Jim Schneider February 18, 2011 at 11:45am

    Tiffany,

    on the Freddie Mac group on this site, we've just added a link to Freddie Mac's Seller / Servicer Guidelines. Those guidelines list all of the Investor's requirements. You may want to check there. Also the contact information for going past WF and directly to Freddie Mac is there as well. I would recommend you write down the EXACT time you fax your letter of authorization, because they tend to act like they couldn't possibly find your LOA unless you can tell them that.

    Good Luck!

  • Bryant Tutas February 17, 2011 at 1:33am
    Tiffany. The easiest way is for the trustee (or another individual) to purchase in his personal name then deed it to the pension fund after closing. Or you can fight Freddie for an exception.
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