I am working on a sale. Buyer is cash, as property won't qualify for financing (other than rehab financing) - anyways, I got a call from Chase that Freddie Mac has a "guideline" that you cannot buy property in trust or llc. I asked the negotiator to provide the guideline and she said I could "look it up" - So, knowing FM publishes their guidelines, I did look it up. Coudn't find it. I called Freddie Mac yesterday and spoke with someone in underwriting who said there is no such thing. LOL..she also said that the servicers should not be quoting guidelines they know nothing about.
I called Chase back and asked them to provide me with the written guideline from FM...they are now scrambling and calling FM themselves.
Thought you would all find this interesting. If someone can add to this, I'd appreciate it.
tha'ts a hoot!
I love it.
Yes, we need to throw it back in their face.
When things were changing rapidly & had statewide postponements, I had to throw it in the banks face & they ended up postponing sale dates due to their lack of knowledge.
We need to keep them scrambling so we have the time to close a proper short sale.
This seems to be a common misconception with negoatiators at Chase. I just closed on a property where the buyer was an LLC and I was told the exact same thing, I told the negotiator to look it up becuase that guideline does not exist. I never had another concern and closed escrow.
I'm glad to hear that Tamilyn. It was VERY interesting to hear the guy in the executive office scramble when I told him Freddie Mac had no such guideline. He immediately got on the line with the negotiator (while I was on the phone) and then the negotiator had to get on the phone with her boss. I knew I stirred up something.
I mean let's face it..not every investor has accessible guidelines but Freddie and Fannie do and we need to use that to our advantage.
Don't forget, purchase guidelines are not the same as short sale guidelines. Freddie is known for it's hypocrisy. They do allow purchasers to be an entity, but may not on the short sale side all the time. The solution is easy, either challenge them or have buyer close in individuals name, then quit claim to entity after close.
I did challenge. I called FM and they said there are no such guidelines for buyers. Now what?
Smitty, call the Exectuive Offices for assistance, they are extremetly helpful, email me for their contact information at firstname.lastname@example.org