Home Buying in 33432>Question Details

Southportlin…, Both Buyer and Seller in 33432

Can I do a short sale on a house the I own and rebuy it after it goes into foreclosure in Florida?

Asked by Southportlinda, 33432 Sun Aug 30, 2009

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14
Dear Southportlinda,

You should discuss your options with an Attorney.

When you sell your home in a short sale, the bank makes you sign an arms length agreement. Part of the arms length agreement that the bank makes you sign requires You not to be the buyer. The only amount you would be able to get your house back is whatever the bank says you have to redeem.

Always a pleasure,
Jennifer Susanne Sommers
Luxury Real Estate Specialist and Fine Home Management/Top 5 Producer
Direct – 561-235-7777
Jen@AgentBoca.com
http://www.AgentBoca.com
0 votes Thank Flag Link Sun Aug 17, 2014
This question makes no sense -
If you do a short sale - there is no foreclosure!!
The two issues above are "either / or" - not &

I believe, based upon the question - your intentions are to keep the home with a smaller balance!
This is what a "loan modification" is all about.

I am a short sale expert and understand the phases from beginning to end...

Look into "Harp" and other programs that can assist - many lenders can be resistant to this.
You may need an advocate to push them...

Get a qualified Real Estate Agent - maximize the situation - know your options.

Gary - 561.306.7653
http://www.reviewgaryyoungman.com
Web Reference: http://www.garyyoungman.com
0 votes Thank Flag Link Tue Jul 29, 2014
That is a loaded question. Supposedly the reason why your home is going into short sale is that you don't have money to pay the mortgage let alone buy the property all over again. Usually when the short sale process is done and the payoff is sent to the closing there is a disclaimer attached that states, the current owner and /or family members are prohibited from buying the property.
0 votes Thank Flag Link Fri Apr 12, 2013
This question doesn't make sense, what are you really trying to accomplish?
0 votes Thank Flag Link Fri Apr 12, 2013
It's actually called short sale straw-buyer FRAUD. Totally and completely illegal in any and all instances.
0 votes Thank Flag Link Sat Mar 2, 2013
You will have to wait 3 years for a FHA mortgage after the recording date of the foreclosure. If you put down 20% on a home, you will only have to wait 2 years.
0 votes Thank Flag Link Tue Feb 19, 2013
Linda,
Rarely does anyone ask a question to which they do not already know the answer.
This is one of those questions.
Of course you can't do it.
Did it not sound too good to be true?
0 votes Thank Flag Link Tue Feb 19, 2013
No, When you short sale it is supposed to be an arms length transaction. In other words the person buying your home cannot be related to you. When you get your short sale payoff, there actually will be a legal disclaimer right on the payoff.
0 votes Thank Flag Link Tue Feb 19, 2013
This can be a real minefield if brokers are not careful. Short sellers may look for a friend or family member with a different last name to purchase the home on the premise that the new owner will rent it back to them. The prospective buyers need to informed of the arms length rule so they don't find themselves in legal trouble after the sale.
Flag Mon Dec 23, 2013
Dear Linda,

You can Short Sale a house that you owe as long as you have your lenders approval. Whether you can buy a house that you owed prior to it being lost to a foreclosure is a little more difficult. Most banks when selling properties as foreclosure ask the buyer to confirm they are not related to the old debtor/owner or related to them.

Dan Statlander
http://statelandbrown.com
p: 561.542.7338
e: dstatlander@statelandbrown.com
0 votes Thank Flag Link Fri Apr 30, 2010
You cannot rebuy a home after it goes through a short sale because there is no home left for you to buy. In a short sale you sell to another person with the approval of the bank. It does not go to the foreclosure process.

If you mean rebuy a house if you let it go to foreclosure. you would have to speak with a real estate attorney. I have heard of family members buying a home owned by a brother or sister with the idea of renting or selling it back to them, but there may be some laws against that.

I hope this helps. If you have any other questions regarding short sales you can get a free copy of my book "Should I Short Sale My Home?" at http://SouthFloridaRealEstateReport.com

Rodney Forbes
Realtor/Broker
ForbesRealty of South Florida
561-337-4810
Rodney@ForbesRealtyOnline.com
0 votes Thank Flag Link Thu Sep 3, 2009
If you have enough money to rebuy it, then why would you think a bank or mortage holder would approve a short sale in the first place? Part of the short sale process is that you have to write a personal hardship letter to justify your financial position. They will check you out. That's what 3rd party approival means on all those short sale listings.
0 votes Thank Flag Link Sun Aug 30, 2009
No. You need to talk to your lawyer to find out what the best options are for your financial situation. The whole point of doing a short sale is to avoid foreclosure. The short sale process is complicated and you need to discuss this with your lawyer. If you sell your house in a short sale, you cannot sell it to yourself. Your lender has to approve the purchase and sale agreement from your buyer who is a third party. If the lender approves the sale, then the transaction would close and the new buyer would own the home. The bank would write off the difference between the loan balance on your mortgage and the sale proceeds. You would walk away. Although the bank may try to get a defiency judgment against you or ask you to sign a note for a negotiated sum.
0 votes Thank Flag Link Sun Aug 30, 2009
See your lawyer as well, as this question gives rise to some other issues.

John
0 votes Thank Flag Link Sun Aug 30, 2009
Hi Linda,

The answer is 'no'. The banking rules are extremely specific about this kind of transaction and it is considered fraud to short sale a home and then try to repurchase it.

A better solution would be to try to do a workout with the bank, a loan modification.

GOOD LUCK,



--
Scott Miller, Realtor®
Estate Specialist
Commercial RE
Business Broker
Realty Associates
561-716-4060 direct
561-451-9377 fax
http://www.LoveBoca.com
http://twitter.com/ScottSellsFL
0 votes Thank Flag Link Sun Aug 30, 2009
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