Note on Foreign Buyers

Everybody wants to work with them, yet there’s something to consider when entertaining an offer from a foreign buyer. Will they be financing? And how?

From my recent experience working with a foreign buyer, banks weren’t loaning money to any foreign buyers who plan on purchasing properties through an LLC (Limited Liability Corporation). In the past, banks might have considered it but have stopped due to the limited remedies in case of a default. Plus, in today economy credit background checks have become much more stingy.

It’s always in your best interest to check with a mortgage banker or broker on the current situation that a potential buyer would need to fulfill, in order to obtain financing before any sale concerning your property. By researching, you can evaluate any offers in a meticulous manner to determine if the potential buyer has the money for a down payment, closing costs and other liquidity measures.

Note: Always use a REBNY offer form and financial statement to qualify potential buyers credentials.