For your convenience, below is an example of the wording that you may see in an Affidavit of Arms Length Transaction that you will be required to sign in a short sale. Anything you do outside of the agreement that you sign may be considered lender fraud.
Affidavit of Arms Length Transaction:
“All parties to this contract hereby affirm that this is an “arms length transaction.”
No party to this contract is a family member, business associate, or shares a business interest with the mortgagee (you, seller, homeowner, anyone whose name is on the loan). Further, there are no hidden terms or special understandings between the buyer or seller or their agents or Mortgagee.
The buyers and sellers nor their Agents have any agreements written or implied that will allow the Seller to remain in the property as renters or regain ownership of said property at any time after execution of this short sale transaction. None of the parties shall receive any proceeds from this transaction except the sales commission.”
So that you fully understand arm length transactions and the ramifications of signing one, you should seek the advice of a real estate attorney.