Foreclosure in Modesto>Question Details

Mms, Home Seller in Modesto, CA

Can I Short Sale to Former Step- Child?

Asked by Mms, Modesto, CA Thu Aug 27, 2009

My ex-husband's child would like to purchase my defaulted home in a short-sale.

Is my relationship with this person considered arm's length or not?

In other words, when is a buyer not considered a relative?

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Answers

5
Rick McGrath, Ph.D, BROKER’s answer
Often we as real estate professionals are asked this question. As stated my previous agents, it depends on the short sale lender. It also depends on the new buyer's lender. Often the new lender also frowns on it. Not only do you need to disclose the relationship to the short sale lender and get a written approval, you need to check with the new lender to be if they have a problem with it. With successfully completing more than 200 short sales, everyone of them are unique in there own way. There is no set pattern or answer.
0 votes Thank Flag Link Fri May 17, 2013
You can short sell to whoever you like. The bank has the choice whether to approve the sale or not. Try it.
0 votes Thank Flag Link Mon Aug 31, 2009
Love the blog heading

You have all to gain if bank approves it. Try and see

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0 votes Thank Flag Link Fri Aug 28, 2009
Mms,
A real estate attorney can answer that question quickly. I know different states have different rules in regards to that.

Good Luck!
0 votes Thank Flag Link Thu Aug 27, 2009
Mms,

This is a situation probably best referred to your CPA or real estate attorney for the most reliable information.

Good luck
0 votes Thank Flag Link Thu Aug 27, 2009
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