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

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?

Saint Paul, MN -

Attorney Answers (2)

Michael Hutchens Frasier

Michael Hutchens Frasier

Business Attorney - Minneapolis, MN
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.

Thomas Michael Fafinski

Thomas Michael Fafinski

Business Attorney - Brooklyn Park, MN
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.

Related Advice

Questions? An attorney can help.

Ask a Question
Free & anonymous.
Find a Lawyer
Free. No commitment.