Replies to This Discussion

Permalink Reply by Cindy Mello on August 18, 2011 at 3:07pm

Hi Bill, I had an offer with PNC with a LLC as the buyer.  The negotiator required the LLC documents and then forwarded to her manager for the thumbs up. I believe you probably have a lazy negotiator and would be a good idea to escalate it if the buyer wants to purchase in the LLC. 

 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 18, 2011 at 6:28pm

Bill,  While I have not had to deal with PNC as yet, I have had many transactions where they will not close with an LLC. No matter whether it's a USA or foreign based LLC.  In those cases, my buyers closed and took title as individuals.

One of the very first "rules of thumb" in the short sale world is NO LLCs or Corps.

 

Best of luck

Permalink Reply by Bill Travis on August 19, 2011 at 12:43am

This is an Arizona LLC. The family is Canadian.

The problem is the tax implication. If they buy as Canadian individuals, then do a Quit Claim to the AZ LLC, it "may" be considered a sale and have a tax consequence whereby the LLC as the buyer may have to collect 10% taxes from the Canadian sellers and go through that tax process.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 19, 2011 at 2:48am

Maybe they should have a Family Trust rather than an LLC as most do.   Canadian Buyers In the CA Desert, buy into a Family Trust, that avoids the issue completely.  Banks don't like LLCs...... they look and feel lilke "Flippers".  Your clients need to seek the counsel of a Tax Advisor to explore their options in more detail which should not include an LLC or Corp.

 

Best,

Thom

Permalink Reply by joe beauchamp on August 19, 2011 at 5:37am

I think Cindy has the right answer.  I only deal with PNC personally on 2nd's, so cannot say for sure, but in general, negotiators can make up their own rules as they go.  Not that they are allowed to, they just do.

If an LLC ever made it through PNC, then it is a confused or bad negotiator.  It is possible that there is an issue with the investor and not PNC.

I would get to someone higher in the team and ask them.  They are useless if they simply refer you to the negotiator or say "what did the negotiator say".  You want to find who and what the issue is.  Is it PNC, the negotiator, the investor and if PNC or the investor, what specifically is the criterion?  Frequently, it is something easily misunderstood and can be corrected.

If still stuck, try the investor - you have this buyer, save the investor money over a foreclosure.  You have a legit U.S. entity wanting to buy and save you losses.  Can you tell PNC to stop screwing around and do the deal?  Or why is it that you'd prefer the loss and ruin the homeowner's financial future with a foreclosure?  Of course, as politely as possible..