Do the words "loan fraud" have any significance?

Ha Ha...everyone wants to do this. It won't work.
http://shouldIshortsalemyhomenow.com

Best of luck and let me know if I can help,
Joan Wilson –Realtor, Ecobroker, SRES, Reo & Short Sale Specialist
Prudential license # 01341483
760-757-3468

Hi Rob, just a clarification:

In a Short Sale the Lender(s) require an "arms-length" transaction. The property may not be sold to anyone the seller has a close personal or business relationship with including family, friends, or in some cases, even neighbors.

Best, Steve

Rob:

Steve is right - in my experience as a REALTOR, anyone buying a home through a short sale cannot have had any prior interest in the property. Best approach is to wait until it forecloses and then buy it, if possible. And you can always check with a real estate attorney to figure out of there is some way around standard bank practice. And the only nutty part of your question is that you are the first person I am aware of to ask this question TODAY… 
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Hi Rob, Unfortunately you need to contact a Real Estate Attorney. REALTORS are not allowed to provide advice on such legal matters as we are not attorneys. Sorry & I hope everything works out for you...

Hi Rob, the banks do not allow short sale transactions between family members as a general rule.

Best, Steve