Home Selling in 32937>Question Details

Lark, Home Seller in 32937

can you short sell a home to a relative that is by marriage?

Asked by Lark, 32937 Mon Sep 20, 2010

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5
Lark,

Instead of a short sale, perhaps call your lender and ask whether or not your mortgage can be assumed. Your relative, may be able to take over the mortgage in it's entirety, and you would sign over the deed to them. It's a route worth trying.

Best of Luck!
1 vote Thank Flag Link Mon Sep 20, 2010
Its not recommended that you short sell your property to a relative or a friend. We all know a majortiy of those that do this are only trying to help you to keep the property for yourselves. In lending terms this is considered a straw buyer and is considered fraud. So my advise is to sell to someone you don't know.
1 vote Thank Flag Link Mon Sep 20, 2010
You are not allowed to short sale your home to a relative in fact the last 15 short sales that I have gotten approved this year alone the banks have asked for notarized non arms length affidavits from both buyer and sellers and also both agents. If you did try to sell the home to a family member and lied about the relationship you are committing fraud and the bank could come after you. Your best bet is to look into all of your options.
0 votes Thank Flag Link Tue Sep 21, 2010
Hi Lark, in a short sale transaction, an arms-length affidavit must be signed in order to ensure there is no relation from the seller to buyer. As you can imagine, there has been a lot of fraud where buyers who are related to the seller purchase the house from him or her, and give it back at the bank's loss. The arms-length affidavit is designed to prevent that sort of situation. My advice would be to try to do a loan mod, or sell the home to a buyer who is not related. Good luck!

Best,
Caroline Choi
Broker Associate/EcoBroker Certified
http://www.CarolineSellsTheCity.com
0 votes Thank Flag Link Mon Sep 20, 2010
You will be required to sign an Arms Length Affidavit which simply put is a statement affirming that you are not related to anyone that is a party to the transaction.

Michael A DeGel, Realtor
The Amato Group, Inc.
321-514-8144
http://www.HomeInCentralFlorida.com
0 votes Thank Flag Link Mon Sep 20, 2010
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