A "friend" is a tough one. I sell homes in an area where just about everyone knows eachother, so we would rarely see a true "arms length transaction". If you and your "friend" have no financial ties to one another, you might be able to make it work. Consult with a real estate attorney for legal advise before you start down this path.... more
The only restriction may be if you were on the mortgage. Read the short sale paperwork for restrictions. If you wee not on the mortgage, you should have no liability to the amount shorted and there for no problems buying, if you were on the mortgage, then have a lawyer read everything to make sure.... more
The general answer is yes, your neighbor or friend can purchase your home in a short sale. Most short sale documentation has an arms-length transaction affidavit. Your proposed scenario will be compared to the affidavit.... more
Just the fact that you have to ask that question, should tell you something. Why not just stay in your home? Or Just find a different home or better yet a place to rent until you can qualify to buy one yourself. . .
You defiantly shouldn't do what you are suggesting above.... more