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Minute Lady, Other/Just Looking in Bay Street Viaduct A...

We want to short sale our house to a relative. Do we have to put the house in the market first?

Asked by Minute Lady, Bay Street Viaduct Area, Savannah, GA Thu Jan 22, 2009

We want to short sale our house to a relative. Question is, do we have to put the house in the market first for everybody else to see? Can we just sell it straight to her?

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Answers

8
Minute Lady:

This is really a question for an attorney, but banks are very weary of arms length transactions. Best
0 votes Thank Flag Link Mon Jan 3, 2011
It's unlikely the bank will approve a short sale to a relative. The banks usually require the transaction to be an Arms Length Transaction. Please call us to discuss your specific situation. We look forward to hearing from you.

Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
0 votes Thank Flag Link Mon Jan 3, 2011
Hello Minute Lady, who knows, even when banks have denied such options, you never know what the "new thing" will be the norm, so I suggest your agent try it any way, worst case senario is a denial, but try to negotiate a loan modification, you might end up with a great interest rate and a new loan.
martin@infinitybrokers.com
0 votes Thank Flag Link Mon Aug 17, 2009
Good Afternoon Minute Lady,

Have you thought about your relatives assuming your loan? (Taking over the payments) Maybe you can speak to your mortgage adviser or seek legal counsel. A short Sale to a relative is not permitted.
Good Luck!
0 votes Thank Flag Link Thu Jan 22, 2009
Minute Lady, The last short sale I did, the seller had to sign a form stating that he was in no way related to the buyer. That being said you could ask your lender but I really doubt that they will allow it....Good Luck, Dawn
0 votes Thank Flag Link Thu Jan 22, 2009
Minute Lady,

Carl's reply is correct. Lenders will not let you short sale your home to your relative, unfortunately.
0 votes Thank Flag Link Thu Jan 22, 2009
That's right! the lender does not like to sell to anyone related to you but they may accept the offer if the price is higher than anyone else can pay for your house, you never know unless you try.

To answer your other question - Yes! you have to put the house on the market to show that you have tried to sell at the highest possible price. The lender wants to get the maximum from the sale of the house.

If you need my service in selling your house, please let me know at 510-366-9405.

Thanks
Blaison Samuel
Certified Short Sale Specialist
0 votes Thank Flag Link Thu Jan 22, 2009
Minute Lady:

It is VERY unlikely that the banks will let you sell to anyone who is related to you. They view it as a conflict of interest. We've asked this question directly of lenders and the answer has always been no. Let me know if you'd like additional information.
Web Reference: http://www.carlmedford.com
0 votes Thank Flag Link Thu Jan 22, 2009
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