Approval Letter?

I intend to put property in a Trust with me as trustee; work on the SS; find a buyer in mean time; on approval sell to that buyer.

The lender has asked for a approval letter! Where do I get that from?

Even if I had a buyer reveling his identity nulls the idea of trust (apart from ease of sale)

Comments(8)

  • SKrei16th August, 2007

    Thanks for the replies; I will get one.
    But it makes no sense to send them a Pre Approval letter form a Trustee when its the buyer who will close!

  • The_Specialist16th August, 2007

    be careful they can void the transaction when you change it to the end buyer. seen it happen. If you have a corp you can then say the buyer is a part of the corp.
    [addsig]

  • SKrei16th August, 2007

    My intension is to fund the property from end buyer.
    Contract is between seller and trust,me as trustee; seller deeds prop to Trust and tx beneficial interest to my company; when I find a buyer the Trust sells prop to him w simultaneous close

  • ShortSalesinCO17th August, 2007

    Quote:
    On 2007-08-16 13:01, SKrei wrote:
    But it makes no sense to send them a Pre-Approval letter form a Trustee when its the buyer who will close!


    You are 100% right - it IS confusing. The foreclosing lender should never see your second transaction so they should actually believe it is your trustee that is closing.

  • nico2me13th August, 2007

    We just closed on an FHA SS here in Houston. We used 85% of FMV and the lender took 3 weeks to accept the offer. Why 85% you might ask? Property is in move in condition, no repairs needed.

    Your assessment is fair. Not bad considering it needs about 15k in repairs.

  • tehl713th August, 2007

    Thanks a lot nico2me - I appreciate your feedback. Best wishes,

  • azct2417th August, 2007

    TL

    TL

    Thank you so much for the reply that does make more sense to me now that you explain it for me, so thank you. I have another question though; you say your offer price is at about 125,000 and change. Where did you get this figure and is it specific to the deal your doing here because its and FHA? Is their any formula you use? What kind of numbers did you run to get that price? Also when you meet the individual for the BPO will he tell you at a later date what the amount is or is it privileged just to the lender? Any help you can give me would be great. Thanks again.

    ct

  • azct2419th August, 2007

    TL

    received the email, thank you very much.

    CT

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