Home Buying in Linden>Question Details

Jessica, Home Buyer in Linden, MI

A judge just ordered my ex husband to give me a chance to purchase the marital home on a short sale. I am

Asked by Jessica, Linden, MI Tue Feb 10, 2009

not on the mortgage but I am on the deed and will not receive any money from the sale. I am unable to secure a loan at this time but my parents will take on the mortgage and rent to own the home to me. Is there a chance for the lender to approve us for the short sale?

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8
Jason S Hill’s answer
Jessica,

The lender may approve a short sale depending on how long the home is listed, the value, and other case by case facts. If the home is currently up for sale lenders some times allow a short sale as opposed to a foreclosure. Are you sure you are unable to secure the loan on your own? There are a variety of financing options available for both you and your parents that may not require a down payment of 20%. Please contact me with any questions.

Thanks,

Jason S Hill
First Mortgage Corp
j.hill@fmcuso.com
0 votes Thank Flag Link Wed Feb 18, 2009
Jessica,
There is always a chance, but short sales are on a case by case basis and every short sale's details are different. You have to A) first speak with the lender who holds the mortgage on the home and B) speak with a lender willing to lend you or your parents the money. If you do not qualify yourself then your parents will need to purchase the home under investment property guidelines (likely 20-25% down payment required.

Good luck!
0 votes Thank Flag Link Wed Feb 11, 2009
It is best to leave you out of picture have your parents pursue property purchase lease back to you. However in many instances family members purchasing a property lease back has ended up in nightmare. GREAT QUESTION
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Feb 10, 2009
Hi Jessica,
perhaps the laws are different in MI but here if you own a property than short sale it you are not allowed to purchase it back or even rent it back... Something to think about.
0 votes Thank Flag Link Tue Feb 10, 2009
There are a lot of gaps here. When your husband "bought" the home were you married? If so, I'm guessing that while you may not have signed the mortgage "note", you indeed signed the morgage. One is a personal promise to pay (the note), the other provides "security" to the bank (so you may have signed it because it covers foreclosure- if you don't pay, you don't stay). Your need some serious discussions with your divorce attorney.
0 votes Thank Flag Link Tue Feb 10, 2009
I have seen reluctance from banks to approve short sales to related parties. Typically the home also has to be listed and marketed to see if another buyer will pay more. I am not experienced in short sales in a divorce and hope someone else might provide some insight.
Web Reference: http://miOaklandCounty.com
0 votes Thank Flag Link Tue Feb 10, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
Well, first you'll need the bank to agree to allow the short sale and secondly your parents will need to get approved for a mortgage. Give me a call or send me an email, I'm experieinced in short sales and can help get your parents approved for a mortgage as well.

Sincerely,
Lisa Bender
Keller Williams
0 votes Thank Flag Link Tue Feb 10, 2009
Only if the bank will approve assumption of the existing mortgage. Otherwise your parents will have to qualify for and get a new mortgage.
0 votes Thank Flag Link Tue Feb 10, 2009
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