Foreclosure in Fort Wayne>Question Details

Laura, Home Seller in Fort Wayne, IN

My house is into forclosure. A family member from other country would like to buy it. Is this legal and possible? I am a US citizen, but he is not.

Asked by Laura, Fort Wayne, IN Tue Apr 20, 2010

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6
Laura
First.... I am sorry you are loosing your home.

I do not know a single bank that will allow this. They generally make you sign arms length transaction meaning you are not related to the person whom is purchasing the home. I have seen banks refuse to sell if the investor was going to rent back the the original owner which in my opinion is going a bit too far but the banks are not happy campers when it comes to this.
0 votes Thank Flag Link Wed Apr 21, 2010
The fact that this is a relative is what will complicate matters. While not impossible, the fact that it would not be an arms length transaction would create many issues. I wouldn't even go there.
0 votes Thank Flag Link Wed Apr 21, 2010
If he's going to need a mortgage through a bank in the USA, then is residency status will be an issue plus since you are related, that will be an issue as well. If he's paying cash for it, then you need to contact a realtor to see if there is an issue on that end.
Joanna Sharp
Mortgage Consultant\
Metlife Home loans
0 votes Thank Flag Link Wed Apr 21, 2010
Your easiest and most cost effective way of doing something like this would be to have your relative dedicate the money to you, offer the bank less as a settlement, paying the mortgage off, then doing what ever you and your relative would like to do at that time.
I have had many cases where when a relative came up with a reasonable settlement amount the bank has taken it, you need to avoid having the bank think it is your money and you will need proof that your relative has the money in full.
Good Luck
Bob Patrick
Buy a home after foreclosure expert
0 votes Thank Flag Link Wed Apr 21, 2010
If you mean it's heading into foreclosure: Sure. No problem.

You'll have to sell for the full amount of the mortgage plus any penalties and other fees. But if you can sell for what you owe, then you can sell to anyone you want.

If you want to sell for less than you owe, then you're talking about a short sale. And your lender would have to approve it.

Hope that helps.
0 votes Thank Flag Link Tue Apr 20, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
The problem is not the citizenship. The issue is that it must be an "arms length transaction" meaning you can not have any relationship to the buyer.
0 votes Thank Flag Link Tue Apr 20, 2010
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