Janeese Jackson, Principal Broker
Real Estate Resource
If the current owner has decent credit at this point, no reason the grandmother couldn't gift some funds to help facilitate a refinance. If the credit is not good, it's going to be a tough road.
What are the long term plans here? If it is to stay in the home it might be worth checking out a refinance. It may also be a good idea to see if a loan through HARP can be done.
My guess is that the credit is already pretty damaged and a refinance is out of the picture. Can we get some clarification along those lines?
Tha naswers you have received are mostly correct. In a short sale you have to sign what is known as a arms length transaction. Basically telling the bank tat you ahve no relationship with the seller and that you are not going to permit the seller to reside back in the house. The bank is already going to lose money on the home. They are not willing to do that just becasue the market has changed and the seller does nto want to absorb the loss of the home. In a lot of cases, the seller cannot afford the current payments. Has he tried to ask for a loan modifcation on the loan to see if he can get the payment reduced?
I also agree with the other thinking below on that see fi he can get it refinaced with his grandmother on the loan with him....both alternatives are more favorable credit wise for him. And they will allow him to stay in the house.
Buy a home after foreclosure
If she did any of the above, it would be considered FRAUD, simply illegal and a crime.
Scott Miller, Realty Associates, Boca Raton, FL
I specialize in short sales so if you are interested in speaking with me regarding your home, please contact me at your earliest convenience for a consultation on your options.
Garett Chadney, SFR
RE/MAX Equity Group
(503) 495-3123 direct