Lefty, The negotiator at the bank will probably not allow your mom to buy it. You could have your mom buy another home, short sale - foreclosure - and rent that one from her. Your mom could also look into buying it from the bank if it forecloses. This would depend on the bank and their policy. For your sake with selling your home usually a short sale is a better option than a foreclosure. I would always speak with an attorney about the ramifications of both. Good luck and I hope things work out for you.

http://www.dawnsellssandiego.com

No. They look very closely to see if the seller and buyer are related. And believe me...if you could, everyone would.

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

One aditional thing.

The brokers or agents responsibility is to to you the seller, not the bank. Unless an agrement is signed, there is no agency relationship with the bank/lender, only the seller.

As others have said, you don't want to commit fraud, so as long as you are honest with the bank/lender you are probubly not in danger of that

Lefty,

Generally what others have said is correct, most banks will not allow a short sale as a non-arms length transaction. There is no law (to my knowledge) forbidding it, it is just that the banks may not allow it . That does not mean it can not be done, it only means that it needs to be researched before you go down that path

I live in RB and would be happy to sit down with you face to face and go over what may or may not be available to you as options.

The is no obligation for us to meet and talk. I can't guarantee you that you will or will not be able to do what you want to. Banks generally do not want to foreclose and if the deal is structured to their satisfaction, they may allow a family member to buy the home. You cant' know for sure until you ask

As far as refinancing with a family member giving you the note. Again there is nothing illegal with that If the family member has the money to pay off the note to the bank, they can charge as little interest as they wish. It might be possible that you can negotiate a lower payoff with the bank.

Without knowing all the particulars such as loan amounts, payment history, your financial condition and who the lender is, there is no way to really give you an answer that is specific to your situation

Give me a call and we can go from there

Jay Gedanken
Broker Associate, REALTOR
SELLSTATE Next Generation Realty
858-605-5839
Jay@saveyoucash.com

Lefty
You should look at other options.
Loan modification
Move out and rent it...check with a CPA regarding tax implicating both while a rental and at the time of sale.

You do not want to get involved in loan fraud.

Hi "Lefty,"

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, and in some cases, even neighbors.

Your credit scores are based on a 24-month period. The Short Sale will affect this for 2 years. Your Credit Report may also show the Short Sale in the "derogatory" section of the credit report for 7 to 10 years. Subject to change, lenders will also not lend to anyone who has had a foreclosure/short sale within 3 years.

Best, Steve

Lefty,

You may want to read up on credit scores. A SS will stay on your credit for 7 years.

Dear Lefty,

As both answers below, no the transaction has to be arms length. If you can hold on to the house for a period of time you probably will see the value return, of course depending on where the home is located and what is happening.

Have you tried to refinance the note? Link to Guide to Avoiding Foreclosure from HUD is below:

You can not sell a short sale to anyone related to you. If it goes back to the bank and it then comes on the market your mother can then purchase it. Be very careful or it can be look like you are doing fraud.

Your REALTOR will have a fiduciary responsibility to the bank and yourself to obtain the highest and best offer on your home. For additional information on short sales and how I can help you please visit my website.

Lefty1973:

No ... no relatives can purchase a short sale ... :)