Home Buying in 07748>Question Details

Mickey - R.E.…, Home Buyer in Middletown, NJ

I am looking at a short sale condo as investment property. The now homeowners do not know where they are moving to.

Asked by Mickey - R.E. Investor, Middletown, NJ Mon Mar 12, 2012

Can I legally rent it to them? I never met them before, this is an arms-length transaction. In speaking with the father, they are going to be getting assistance because they have 2 disabled children and they certainly take care of the place well. Is it allowable?

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Answers

3
That's a good question. I would speak to the attorney that is representing you in the sale. All banks and short sales have different rules and regulations.
0 votes Thank Flag Link Fri May 16, 2014
The answer is No you will not be able to rent to the current owners, at least non of the short sales I've done here in Monmouth County, NJ.

The lender makes all parties involved, buyer, seller, agents, etc. sign an "Arms Length Agreement "
which can include something like this,

There is no agreement, whether oral, written, or implied, between the Seller(s) and the Buyers and/or their respective agents which allows the Seller(s) to remain in the property as tenants or to regain ownership of the Property at any time after the consummation of this sale transaction.
0 votes Thank Flag Link Fri Apr 12, 2013
The answer depends on the lender's short sale approval terms. Some won't allow the seller to remain in the home in any way and some will.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Mon Mar 12, 2012
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