Freddie won't allow a Trust to purchase a short sale?...Really?

Wells is servicing for Freddie and will not allow us to move forward since the Buyer is a Trust.  Per Wells the guidelines set out by Freddie state that a Trust can not purchase a short sale...since when did it matter who buys the property?  We have submitted the fully executed "Arm's Length" Affidavit provided by Wells which states there is no affiliation between the Buyer and the Seller.  Has anyone had this issue before?  What did you do to get around it?

Views: 93

Replies to This Discussion

Permalink Reply by joe beauchamp on June 19, 2012 at 7:45am

Think of Freddie as being as logical as the previous leader of North Korea - they have some sort of agenda, but what you see sometimes clearly hurts everyone. I think it is Freddie who will sell to an LLC but not to an Inc.. Legal diff? Not much.

Most people just buy as an individual then put it into a trust. This is the advice when it comes to refinancing - take it out of the trust, refinance, put it back into the trust.

You can call Freddie directly - I never have - assuming that I'm better off talking to the wall. But maybe you'll get some explanation.

Permalink Reply by Smitty on June 20, 2012 at 2:38pm

Yes.  this has been in existence for a while now.  Freddie won't allow TRUSTS to buy property for fear of fraud.  There is NO written guideline pertaining to this however if you CALL Freddie, they will back this up.  It's ridiculous.

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************