Home Selling in Bronx>Question Details

Samsam, Home Seller in Bronx, NY

Can you short sell a house to a family member?

Asked by Samsam, Bronx, NY Tue Apr 2, 2013

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Here in nys there is sonething called an arn s length form that will be signed by both buyer and seller stating that you guys are not related.Again give me a call because you may have other options other than a short sale. I have helped many families in similar situations.
1 vote Thank Flag Link Mon Apr 8, 2013
About half of the loans I work on happen to be short sales. The buyer & seller relationship must always be disclosed to the lender. I know from experience that you will not have any chance of getting a short sale approved if it's being sold to a first blood relative (sister, brother, parents, etc.). If it's being sold to a cousin or something like that, who has NOT lived in the property, is buying the home as a primary residence and is financially independent from whoever currently holds the mortgage, there is a chance (a slim chance at that) that the current lender would approve that short sale. Keep in mind that iin theory, the short sale bank is taking a loss by accepting a sale price that's a fraction of the total amount owed to them. They will want to make sure that the buyer isn't doing what's called a foreclosure bailout. This would be a relative or even a friend buying the house only to help the current mortgagor save his/her house. This is fraud and they are on the look out for it.

If you're interested in speaking to a Realtor who has a lot of experience with short sales in the Bronx, and can help you make a decision and determine if a relative can buy it or not, please email or call me and I will provide you with the name and number of someone I've worked with and I know can help you as well. They also have short sale experienced attorneys who can help you along the way as well. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
1 vote Thank Flag Link Tue Apr 2, 2013
Hi Samsam,

Unfortunately most short sales have to be conducted as an arm's length transaction which means the buyers and sellers of the home act independently and have no relationship to each other. The concept of an arm's length transaction is to ensure that both parties in the deal are acting in their own self interest and are not subject to any pressure or duress from the other party. Plus selling to a family member would lead to a bigger discount defeating the purpose of the bank getting as close to fair market value as possible.

If you have any other questions or concerns. Please don't hesitate to contact me.

John Lajara
REALTOR®/Notary Public
Certified Buyer Representative® (CBR)
Certified Distressed Property Expert® (CDPE) "Saving families from foreclosure"
Cell: 917-848-4655
Fax: 917-522-9638
Website: http://www.JohnsRealtySuccess.com
E-mail Address: john25lajara@gmail.com
EXIT REALTY SEARCH | 3928 E. Tremont Ave | Bronx | NY | 10465

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0 votes Thank Flag Link Mon Apr 8, 2013
You would have to commit perjury to do so.
There will be no less than THREE documents you must sign, as well as EVERY professional involved in the transaction, attesting this home is not being sold to family, relative or that you, the seller, will derive ANY benefit. So not only would you have to commit perjury, you would take everyone involved down iwth you too.
-
Don't do it.

Best of success to you,
Annette Lawrence, Broker/Assoicate
Remax Relatec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Mon Apr 8, 2013
The best thing to do is speak to a local realtor that specialize in short sales. Give a call and I will help you with your short sale.
Bruce A. McIntyre
646-588-1720.
0 votes Thank Flag Link Mon Apr 8, 2013
A short sale is called a short sale, because the current owner owes more to the bank than he is able to
sell the house for in that particular market, so the bank will have to be ready and willing to accept a short sale, basically get some of the loan amount back through the short sale but not all of it......i.e they will
be short and take a loss, the bank that is!

Now it will make sense to you, that if the offer comes from a family member that the bank may not be
so sure that someone else would not pay more, or that this family member is just doing a kind of bail out
to help the current owners.... So careful....

Work with a Realtor who is experienced with Short Sales and knows all the local rules and ins and outs
Also make sure you get well informed about what your own options are after and if a short sale goes through...
Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties ---- EdithSellsHomes@gmail.com
Check out my website at htttp://tinyurl.com/YourRealtor4Life
HAVE THE MOST WONDERFUL DAY :)
0 votes Thank Flag Link Tue Apr 2, 2013
You will usually need to list the home for sale with a Real Estate agent in order to obtain the best possible purchase contract before your lender will approve a Short Sale. Selling to a Family member will most likely not be allowed.
0 votes Thank Flag Link Tue Apr 2, 2013
Consult with your attorney before considering the idea; generally short sales need to be an arm's lenght transaction--people not related, nor anyone who may share an interest with the owner, etc.
0 votes Thank Flag Link Tue Apr 2, 2013
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