Home Buying in Cape Coral>Question Details

tutdkdmd, Home Buyer in Anaheim Hills, CA

we short sale our house almost 3 years ago and now the owner is selling it, can we buy it?

Asked by tutdkdmd, Anaheim Hills, CA Sun Oct 14, 2012

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Terry McCarley’s answer
Consult an attorney - please do not listen to Alexander - he has obviously never read a short sale arms length transaction affidavit and getting involved in a fraudulent scheme is definitely NOT something you should get involved in!!!
0 votes Thank Flag Link Wed Oct 24, 2012
In theory, this is fine, since the short sale was an arms length transaction between total strangers and buyer and seller never "colluded" to defraud the lender for the negative difference. However, if there is in the lender's mind, that there was cooperation been former buyer and seller, and it may not be an "arms length transaction". The best way to approach this is to consult with a real estate attorney. Have the current owner put the property into a Trust. Then, nominate you, the new buyer (who was the previous owner), the Beneficiary of the Trust, i.e: or the Manager. Have the current owner, switch his insurance policy, from his own name, to the name of the Trust, for "estate planning purposes". The Title Search, or the Insurance change is what will trigger the fraud investigation by the original lender. However, if the property is entered into a Trust, and insurance is switched to that Trust, before any sale takes place then the Deed remains owned by the Trust, when you take possession. I'm assuming you now have good enough credit to get financing. So you're not buying the property. Instead, you are buying real estate held inside a Trust. Once you take possession, your deed recording stays the same as it is, in the name of the Trust, not in your own name. So from a Deed perspective, it is still in the name of the Trust, not in your name. The seller then sells you all shares of the Trust and you buy all shares. He relinquishes ownership of the Trust upon you cashing him, out,since you are buying out all shares at the time of the closing. You are not buying the property. You are buying the Trust, which is essentially like an LLC that owns the real estate. You are buying all his shares and removing him as Owner of the Trust, and you are making yourself, the Beneficiary (pre-sale) now the owner, upon sale. This is best answered by a Lawyer but this is the general outline of how you'd move this along.
0 votes Thank Flag Link Wed Oct 24, 2012
I would consult an attorney as we are not licensed attorneys to give legal advice. there may be something in your short sale stating you can't buy it back, but maybe after a certain amount of time you might be allowed to. This is why it might be wise to ask an attorney
0 votes Thank Flag Link Mon Oct 15, 2012
Most likely NO - read your approval letter for conditions and also go thru ALL documents you signed regarding the short sale. Odds are you signed an "arms length transaction affidavit" that prevents you from buying the house back. If your documents aren't crystal clear regarding this you need to consult with an attorney.
0 votes Thank Flag Link Mon Oct 15, 2012
I do not believe there's anything that would prohibit you from purchasing your home which was sold as a short sale three years later as long as you qualify for a mortgage. You should contact a real estate attorney and confirm this.
0 votes Thank Flag Link Mon Oct 15, 2012
I would have to second Tina's opnion. There might be a stipulation that may prevent you from pursuing your previous home.

I said may because this is not a defnite answer. You may have to review the documents you signed.

You can also seek a lawyer's advice to interpret the legalese.

But of course, financial ability should be in conjunction with this.

Good Luck.
0 votes Thank Flag Link Mon Oct 15, 2012
If you can once again qualify for financing and have the necessary downpayment, then you may have a chance. You'll have to check with your original short sale approval to see if the restrictions go that long.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sun Oct 14, 2012
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