Bank Won't sell to an Investor.

[Matt Whiteside]

Had a deal to do a short sale with HSBC as the lender, When they found out I was an investor they wanted me to change the contract into my own name and then resubmitted. I did it, then they said that because I was going to sell for profit they won't accept my offer. Very frustrating, how do I get around this? My realtor says to just buy in my name then quitclaim into my s-corp, is any one doing this? If I do it this way and take out the addendum in my contract saying I may sell my interest at a higher price. Would I set myself up for trouble?

[Scott Hubbard]

Come on.... this game is not so difficult to figure out.

Since it is a first mortgage, who is the investor? FNMA or FHLMC To figure this out ask the negotiator or go to:

https://ww3.freddiemac.com/corporate/

https://ww3.freddiemac.com/corporate/

Chances are that if either the above is the investor, then they do not want to sell to investors becuase they believe flipping constitutes mortgage fraud.

If the loan belongs to neither, then it could be the investor or the service agreeement has restrictions upon selling to an investor who intends to flip.

I REALLY doubt it is anything personal becuase these servicer's are in the business to make money and emotions do not play a major role in the decision process.

Before you go any further, investigate who the investor is. If not, FNMA or FHLMC, then you might take another shot by dropping the disclosure or burying deep in the contract. I would not recommend proceeding without disclosure.

If FNMA or FHLMC, I would not even touch them with a ten foot pole.