SHORT SALE TRANSACTION HELP NEEDED

[Pedro Gonzalez]

I would like someone with extensive experience in Short Sales to provide me with answers to the situation below.

1. I have a friend who has established an LLC in the State of CA to run all his short sale transactions.
2. He is a real estate broker in the state of CA
3. He is not acting as a broker on any of his transactions - he acts as a real estate investor
4. He is using a recorded option agreement to gain an equity position in the property.
5. All documentations are fully transparent, notifying both the short sale lender and end lender of the LLC buying/selling for a profit.

Here are the main two issues:

1. A national title companies will not underwrite a title policy. Everyone except the underwriter is on board with the concept of his short sale investor business plan. He has found a Title/Escrow company/officer in San Diego that will do the transaction, however, the title agent ultimately places the title insurance with Chicago Title, which has told him that they would not do his escrows in San Mateo County.

2. The lenders for the end buyer want to see his LLC’s name on a preliminary title report prior to them funding. He sees that as impossible and will not happen. Likewise the end buyer lenders will not fund jumbo or “investor†buyer.

What can he do to correct the situation above?

What can he do differently in the future?

Your ideas, direction, and comments will be greatly appreciated.

Thank you.