Foreclosure in Sacramento>Question Details

sinprab, Home Buyer in 91730

My lender asking for a Corporate resolution on a short sale? California property FNMA loan financing. BoA is the lein holder.

Asked by sinprab, 91730 Mon Nov 26, 2012

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Ted A Greene’s answer
Hi Sinprab,

More than likely, if you are the buyer, Bank of America will ask to see who has signing authority. I've noticed not all negotiators (from BoA) asks for it, so it just depends on the negotiator. Not to worry though, I'm sure they're just looking to see who can sign for your company.

Hope all goes well!

Ted A. Greene - Broker
JCL Realty, Inc.
916.442.4500
0 votes Thank Flag Link Tue Nov 27, 2012
Sinprab, Elizabeth is right on target. I just closed a short sale where the buyer was an LLC. So in the case of this short sale, the lien holder/loan servicers are probably just trying to verify signing authority and the paper work should be provided to them.

But my real reason for answering the questions was to pat Sue on the back! I always wondered where all the Meryvn's employees went.

Good luck
Web Reference: http://www.kyleeroe.com
0 votes Thank Flag Link Tue Nov 27, 2012
I have a theory that the lenders needed employees about the same time Mervyn's went out of business. So just imagine that it's a former Mervyn's employee at that other end of the line.

In addition you're dealing with a GOVERNMENT AGENCY who controls the actions of the loan servicer in what they require to make a decision. So with two strikes against you, and them holding all the cards, either satisfy their request or try to escalate this. In most cases, it's easier to try to satisfy their request. If not, try to call the executive offices for Bank of America and see if they can help intervene for a reasonable solution.

This is all to assume that your issue is in negotiating the short sale approval with the seller's lender. If this question is related to a buyer attempting to get financing from their own lender, then just choose another lender.
0 votes Thank Flag Link Tue Nov 27, 2012
Sinprab.

I guess you decided to write up the offer with your LLC or Corporation... is that right...?

If so, I'll throw in my opinion with Elizabeth there... sometimes the people working for these various bank servicing outfits on these short sales can get a little power hungry.

I don't think even a title company would ask for this, but I could be wrong. I took title to a property and deeded out using an LLC and they didn't ask for any corporate resolution.

I once had a BofA short sale where the bank didn't want to approve the deal of the buyer because they were taking title as a "partnership" and it was part of a 1031 exchange. When you get on objection like that, it does take some phone calls until you get to a person who has some knowledge of the business and business practices.

And as Miss Elizabeth might say, you wonder where they get these people.

You will have to just work with your agent and give them what they want.

I hope this helps...

Make it a Great Day...!!
0 votes Thank Flag Link Tue Nov 27, 2012
Are you the seller or the buyer? If you are the buyer, it would be common for a bank such as Bank of America to request corporate documents. Bear in mind, too, that most of the time it is not the bank but the negotiator (who is supposedly representing the bank) who makes idiotic requests. I think they find these people sleeping under a bridge.

It is entirely possible that the negotiator wants to know that the person signing on behalf of the corporation in the purchase agreement has the authority.
0 votes Thank Flag Link Tue Nov 27, 2012
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