Does anyone know if a property can be purchased in a company name (LLC) if Freddie Mac accepts the short sale on that property? The bank says the property can only be sold to someone using a personal name and not an entity. Has anyone encountered this? Can you point me to documentation either way? I have called Freddie Mac and received two different answers - one employee said it’s ok to buy in a company name and another one said it wasn’t. Thank you.
Freddie Mac's rule on who buyer must be on their short sale
It is not a Freddie Mac rule, though banks will say this. It is the banks rule. I have an officer of our corporation put the Short Sale in his/her name and have the Title company transfer the title to the company at closing.
Freddie Mac cannot discriminate between a buyer who is a private person and a corporation. :biggrin Remember, not even the government owned entities can discriminate against a corporation who may be owned by people of protected classes (gender, race, religion, age, etc.) in favor of a private individual. No documentation is needed. Also, remember that the servicing lender is rarely empowered to negotiate between you and the secondary market investor.