Can A Friend Or Relative Buy My Short Sale?

13 Sep 2010 · Kurt

If your goal and objective is to try and have somebody else buy the home for a reduced price so that you can stay in it or re-buy it at a later time the chances of that happening are very slim.What’s happened over the past couple of years is the banks have gotten wise to this particular tactic. And if they allow you to do a short sale, many times what they are going to do is have you sign off on what’s called an arms-length transaction. What that means is in that document that you sign off on sometimes have been notarized as well stating that you have no relationship with the buyer whatsoever no predetermined arrangements with the buyer to be able to buy the property back or even stay in the property and rent it. If you go ahead and sign off on this disclosure in order for the short sale to be completed and violate those terms, you are running the risk of getting potentially caught in the future.

A couple of things you have to understand is that banks may or may not have access to your credit records and if it still shows your same address a few years later after you’ve done a short sale, they may come back asking questions. Secondly, the FBI has created an entire mortgage fraud division where they are most focused on short sales and trying to determine if anybody is doing this. It’s not to say that this has not happened on the past where that you wouldn’t be do this if you gave the bank full disclosure and they agreed to it, you just have to be aware that many of the banks are not allowing this.

Each bank, each circumstance is a case by case basis so what we have to do is find out what’s going on, why you want to do this, who this person is in relation to you and what your particular lender’s position is on this particular scenario.

Some of these arms-length transactions that we’ve seen come across from the banks actually state that the seller cannot have ever even met buyer before in their life or never known them whatsoever. There are some banks who are doing some cross reference checking in regards to social security numbers etc. and it’s very easy now to research online via Facebook etc. and see if you have any relationship. I wanted to address that question, It’s not to say that it can’t happen, it’s just very unlikely and we have to weigh us out in a case by case situation.

If you have further question about this please give me a call and I’ll talk to you for free over the phone or in person and we kind of assess that situation and if it may or may not work out for you.

Thank You very much for listening to my presentation: Can A Friend Or Relative Buy My Short Sale?

Kurt Wannebo
San Diego Real Estate and Investments

Kurt Wannebo

California / San Diego Real Estate & Investments / Broker Kurt · 3636 Nobel Drive · Suite 170 · San Diego, CA 92122

Phone: 1.888.473.7324 · 858-412-5541 · Email: info@sdreai.com

CalBRE#: 01468255

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