Buyer name change addendum after contract execution

[Marc Cleverley]

Has anyone ever changed the name of the buyer from an individual to a company the individual owns after execution of the contract? All happening of course before closing.

Example:

John Smith is buying 123 Easy Street

Bank addendum is submitted before closing to change to

Investment Company LLC (which John Smith is a partner of) is buying 123 Easy Streeet

[Jon Holdman]

Who's the seller? A bank (REO or short sale) may object.

Are you paying cash? A savvy seller will know its harder for an LLC to get a loan than an individual.

[Marc Cleverley]

The seller is BOA (not short-sale), we are paying cash for the property and in this situation right now. My agent swears by this method as it gets the offer looked at more than a LLC offer. I keep pestering her for this addendum as it's the first property we have purchased. I trust her, but don't like that it's 5 days from clsoing and the offer is still in my name and not the company.

[J Scott]

In my experience, it's unlikely the bank will agree. I've seen it happen, but it's more likely with a smaller bank and during a contingency period.

Also, it's not my experience that a bank would rather see an investor offer in a personal name vs an entity.

[Andy Chu]

Why not change title after close of escrow? For most places, it's a simple Quit Claim and Transfer taxes usually are not needed if you can prove that the person owns the LLC solely.

[Carlos Flores]

Sounds like an REO. I seriously doubt the bank will allow a name change once the offer has been accepted. Most banks stipulate you can't assign or change the buyer.

[Marc Cleverley]

Agent is telling me the bank won't do it before closing due to lawsuits. So to echo what Andy said she wants to deed it back to the company after closing. I am a 50% owner with one other member though.

[Carlos Flores]

I hate to say it but I think she is covering up the lie she told you the first time.

[Teresa F.]

I changed from an LLC to a land trust owned by a different LLC. This was a short sale by BofA. Had to provide trust docs but BofA seems to be lightening up on its previous craziness.

[Brian P.]

Simplest seems to be just to use the clause vesting to be determined in escrow. I never had a lender in escrow with me already say you can't do that, and besides the contract says I can.

[Bill Gulley]

Originally posted by Carlos F.:

I hate to say it but I think she is covering up the lie she told you the first time.

Yes, and if it's five days to close,closing documents could have ink drying and you can't change those with an addendum and no one wants to redo them, so expect to go to closing in your name, IMO.

As to changing it later on, using a quit claim will weaken the chain of title, better to use a Special Warranty Deed subject to existing financing