Buyer to buy bank own property claims second party investors to sign off? is this this original owner?can band delay on this?

Asked over 1 year ago - Saint Paul, MN

Bank selling 5 year old foreclose gets full price FROM ME - claims investor has to sign off on the property first before confirmation of offer (nothing from bank stating a deal) cash deal. 20 thousand down 2 and half month delay - Second broker (myself buyer/agent of second broker) and first broker had listing contract expired 1-1-13 - Question Who is the investor which bank claims needs a sign off on property ? is it a cover for original owner?

Additional information

I'm the agent for the buyer - I made a full offer for 20,000 sq ft building for the buyer that bank (seller) set.. Seller agent with bank owned property states that the bank could not sign offer until the investor signs off on it. 1. question, could the bank be refering in any way to previous owner foreclose on in 2008. 2. why would it take two-three months sign off on the property, if we gave the bank price they were asking? 3. Wouldn't be a clause in the bank/investor contract that pertect the bank, essentially forcing the investor to sign a release? Thank you Michael

Attorney answers (2)

  1. Michael Hutchens Frasier

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    Contributor Level 8

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    Answered . Are you paying for the property out of your pocket or are you borrowing money (whether a mortgage or a private investor) to help purchase the property? Your question is a little vague and tough to decipher. Providing more details would assist us in answering your question.

  2. Thomas Michael Fafinski

    Pro

    Contributor Level 9

    Answered . It is quite possible that the (1) investor is the guarantor of the original mortgage or (2) a single or group of participating bank(s). Loan participation was quite common a few years ago, pre-2008, where banks would pool together and take a percentage of the loan. This minimized exposure of each individual bank and provided diversification. It was also common among smaller banks with lending limits that prevented them from doing the transaction unless they pooled their lending limit with other banks. In those situations, the lead lender handled the negotiations and facilitated communications between the loan participants.

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