When the buyer of a short sale is a Limited Liability Company (LLC) or Corporation, there are specific documents that must be completed. Typically we see this type of buyer when there is an investor making an offer on the property. If required documents are not provided, the short sale process can experience significant processing delays. Per Bank of America, the largest servicer of mortgages in the U.S., the following rules apply for this type of Buyer:
LLC required documents: if the buyer is an LLC, the following documentation must be provided to the Short Sale Specialist:
- Fully executed Articles of Incorporation / Organization and Operation Agreement (contains Members Agreement which lists Officers and their ownership interest in the company)
- Proof of funds in the LLC’s name
- Proof of the buyer’s connection to the LLC
Corporation required documents: if the buyer is a Corporation, the following documentation must be provided to the Short Sale Specialist:
- Copy of Articles of Incorporation
- List of Shareholders and Officers
- Proof of funds in the Corporation’s name
- Proof of buyer’s connection to the Corporation
When providing the required documents specified above, be sure they are legible and all pages of all documents are included. In addition, name each document with its own specific title (e.g., Articles of Organization). Failure to provide the Short Sale Specialist with fully executed and legible required documents may cause delays in processing the short sale file, and / or may result in the file being declined.
Per investor guidelines, additional documents may be required and will be communicated, as applicable, by the Short Sale Specialist.