Are there any "Arms length" restrictions on purchasing a "short sale" home from a family member?

Asked by Joem, Williamsburg, VA Thu May 13, 2010

Help the community by answering this question:

+ web reference
Web reference:

Answers

1
Pacita Dimacali’s answer
Pacita Dimac…, Agent, Oakland, CA
Thu May 13, 2010
If you're a family member or somehow related to a property owner who is selling his property as a short sale, you can't buy it.

Here's a good post about this http://homebuying.about.com/od/shortsale/f/arms-length-affid…

It says:

What Does an Arms-Length Affidavit Contain?
Most banks create their own arms-length affidavits. Therefore, the language can vary from one affidavit to another. Following are the points contained in a basic arms-length affidavit:


•The arms-length affidavit references the property address, name of the sellers, buyers and agents, and the fact this is an arms-length transaction.

•No party to the short sale contract is a family member, business associate or a person who shares a business interest with the seller.

•There are no hidden terms nor special agreements among the buyers, sellers and / or agents.

•Once the transaction closes, the sellers will not rent back the home nor regain title to it.

•None of the parties will receive any compensation except for the commission paid to the agents.

Hope this helps
0 votes
Search Advice
Search
Ask our community a question
Home Selling in Williamsburg Zip Codes

Email me when…

Learn more