Tom, Other/Just Looking in New York, NY

While waiting for the bank to approve a short sale, would renting this property complicate the process?

Asked by Tom, New York, NY Wed Feb 25, 2009

I'm looking to buy a house through a short sale. My offer has been taken to the bank through a broker months ago, but we have yet to hear word from the bank.

The owner can no longer keep up with the utilities and is soon moving to a friend’s home to live rent-free. 

The home is in a semi-depressed area and both the owner and I are worried about what would happen to it if left unoccupied. 

If I were to rent the house, or “house-sit” while we wait for the short sale to be processed would this violate the “arms length clause”? 

I certainly don’t want to further complicate the process, however I also really don’t want it to sit empty for an indefinite period of time. 



Getting kicked out of the house if the short sale doesn't go through is a risk I'm willing to take.

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Answers

5
Bill Eckler, Agent, Venice, FL
Thu Feb 26, 2009
Tom,

There are too many good reasons for maintaining your distance while your offer is being considered by the bank. Additionally, renting the home is not going to improve your status as far as the bank goes. As a matter of fact, as you point out, the "arms length" clause may become a negative factor for you.

We feel your impression of "further complicating" the process is a valid concern.
0 votes
Kathleen Pud…, , Rockland County, NY
Thu Feb 26, 2009
Hi Tom,
This question falls into the legal category. Get all Attorneys to put the answer in WRITING!!!!!
Kathleen
0 votes
Tom, , New York, NY
Wed Feb 25, 2009
Thanks for the advice. Much appreciated.
0 votes
Tom, , New York, NY
Wed Feb 25, 2009
Thanks for the advice. Much appreciated.
0 votes
John Maiorano, Agent, Pearl River, NY
Wed Feb 25, 2009
Tom, You should discuss this with your Attorney. The 2 transactions should be considered separate and it should not be a problem, however, the Seller's Attorney may have a problem with you occupying the house. After discussing it with your Attorney, have him/her call the Seller's Attorney. You should also be aware that some short sales never happen. So you may be putting your resources into the wrong thing. Good Luck.
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