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Anyone have problems w/buyer buying a short sale property with an IRA.

Posted by Laurel Lewis on July 29, 2012 at 5:47am

Waited 6 months for an approval letter on a short sale my buyer is wanting to purchase from Wells Fargo with Freddie Mac Investor. He started out using a loan n at about the 3 month mark decided to use his IRA. Listing agent and I both decided an addendum to change verbiage on buyer name would be best added after approval was even given. Otherwise short sale may be stopped n restarted. Upon uploading the change, days before closing, the Equator system kicked out a note from negotiator saying, "Investor wont allow buyers to purchase with IRA!" No reason. Wells is claiming its Freddie but the IRA company says they've had Wells be fussy before n that's the ONLY bank ever to cause them problems to the point of buyers losing homes.Anyone have help for me? Experience? Someone high up to call? My client is about to lose the house and we can't even understand how its legal.Thanks.

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Comments

Michelle Mattison September 12, 2013 at 5:02pm

Laurel, I am facing a similar situation right now with a Wells Fargo Short Sale. In fact, almost the exact scenario. The buyer wanted to use his IRA later in the short sale process and the bank is taking us through some serious challenges to get to the FHA approval. Good offer, acceptable net, etc.... they just don't seem to like the Self Directed IRA buyer.

Can you tell me what specific documents they requested from the buyer for the Self Directed IRA? No one, not even a supervisor seems to have a specific answer for what they need.

If you found a good escalation number that was helpful, can you please share? How did the situation end for your client?

Thanks so much, Michelle