Who Is Buyer On P&S Agreement? Tell Lender Your The Buyer?
Hi, I was hoping some of you experienced short salers might have some good insight into this:
When you're getting a property under contract to do a short sale, who is the Buyer on your purchase and sale agreement? Your entity? Trustee of a land trust to be created?
Also, when you contact the lender to negotiate the short sale, are you identifying yourself as the buyer or someone else? If someone else, who do you say you are?
Thanks!
Martin
KISS.
If it's your intent to purchase the property than by all means you are the named Purchaser. If you are thinking about 'flipping' the deal because you aren't financially able to close, or some other reason, the named Purchaser should be an entity such as an LLC (or whatever vehicle your business plan indicates). Your new buyer would join the LLC and provide financial qualification / resources to complete the purchase.
Once the Seller/Mortgagor completes and submits an application for short sale consideration, you, as Purchaser, should follow up and be prepared to articulate the key components of your compelling, written Proposal that should accompany the boilerplate application.