Home Buying in Woodland>Question Details

Nancy, Home Buyer in Woodland, CA

Can a parent buy thier childs short sale?

Asked by Nancy, Woodland, CA Thu Aug 21, 2008

We put the down payment on a hafl plex and where on title and mortage 8 years ago, but no longer. Daughter is going through divorce and the property is not worth what she owes. We own the other half, and want to be able to control who lives in my daughters half, and protect the value of our half. We have no intention of selling it back to our daughter. We want to keep the property for at least 5 years or more and sell to recap our investment. I talked with her lender, and they are fine with that. I am being told that the lender we use may not be agreeable with a relative buying. We could pay cash, but at our age we would rather not. Can you help?

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3
If your lender does not seem to want to do your loan, you can look into using a local bank who may be a little more flexible. Are you looking to payoff the entire loan or pay current market value for the unit?
0 votes Thank Flag Link Fri Aug 22, 2008
Ask your lender, and then, if they won't go for it, ask her lender what they can do. Then get another opinion from yet another lender. It sounds like her lender would put together a package for you, especially if you can put some cash into the deal. It would be in their best interest to do so - and avoid the hassle and cost of foreclosure. Multiple opinions are a good idea here. Hire a title company to be sure you get clear title - there may be tax, contractor or 2nd mortgage liens to deal with.
0 votes Thank Flag Link Thu Aug 21, 2008
I would suggest getting a Hard Money Lender to finance the Short Sale then refinance to a traditional Lender after a few month. That should make everyone happy.
0 votes Thank Flag Link Thu Aug 21, 2008
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