Some short sale lien holders will also have you sign something that states that you can't resell the home for 30 or 60 days after closing.
But, it is my opinion (I am not an attorney & you should consult one), that if you are not a family member or friend or business associate of the current owner & you turn around & sell it to a family member of the previous owner, that is not illegal or an act which the previous lien holder could come after you later.
Trust me, these banks are busy enough processing short sales, making new loans & screwing around with homeowners who think the bank cares enough to give them a viable loan mod that makes sense in the long term, then to pursue you in a lawsuit for selling a property back to a family member of a previous short selling homeowner. (Again, this is my opinion, I'm not an attorney, you should consult one)
Shoot me an email directly if you'd like to talk about this further, I don't look back on this same Trulia thread for answers posted after mine.
Emily S. Knell
Realtor Since 1996
Realty ONE Group
Short Sale Specialist - 100% success rate
The home can not be sold back to previous owner or a family member of the previous owner.
I am sure some people have come up with "CREATIVE" ways to try and get around the rules, BUT I would not advise it.
Kawain Payne, Realtor
Although you are not related to the seller, by you selling it to the party who is related might be construed as shady.
This is just my opinion and not a legal advice.