Home Selling in Bakersfield>Question Details

Jim, Home Seller in Bakersfield, CA

Is it possible to short sale my home to my father and continue living in it, renting it from him.?

Asked by Jim, Bakersfield, CA Wed Sep 30, 2009

I am currently 2 payments behind, I owe 240000 with wells fargo and 74000 with B of A. The home value is 180000 according to a letter from the tax accessor. and we are experiencing a hardship with my wifes business.

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3
Hi Jim, Unfortunately no. Do 'regular' short sale... but have your agent express to the new owner if they are going to use it as an investment property to consider you as an in-place rental prospect.
0 votes Thank Flag Link Sat Sep 3, 2011
The sale has to be an "arms-length" transaction. Meaning you would not be able to sell your home to your father. I would suggest you try a loan modification. Speak with your lender about it. Also ask your lender about "The Making Home Affordable" program.
Regards,
Susan
0 votes Thank Flag Link Wed Sep 30, 2009
Hi Jim,

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. The Seller normally signs a paper that confirms this is not the case.

As a side note, if you are considering a Loan Modification and are wondering if it’s worth the time to explore your options there is one data point you might reference: http://docs.Steven-Anthony.com/LoanModStats.pdf Page 2 of this document shows which lenders/servicers have the best “loan mod conversion” rates. I do want to caution you that Loan Mod Approvals are becomming more common.

If you are looking for details of what is required in order to have a loan modification granted see:
http://docs.Steven-Anthony.com/LoanModGuidelines.pdf
Since there are still a number of shady companies offering LM services, I have included a link to HUD-approved counseling agencies at the top of the page.

Best, Steve
0 votes Thank Flag Link Wed Sep 30, 2009
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