can my mother-in-law pay cash on a short sale of our vacation rental property that just has my name & not my wifes on the bank loan?

Asked by Terryssmedical, Morro Bay, CA Tue Nov 15, 2011

we have an investment property that has 2 homes on it that are vacation rentals..not our primary residence. my mother-in-law wants to purchase as an investment. she is going to pay cash. Is this allowed?

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9
Michael Byrd, Agent, Arroyo Grande, CA
Tue Nov 15, 2011
Is that a mother-in-law joke? Henny Youngman has a million of them.

Seriously, if the short sale is approved you will be required to sign a form that states that you have no relationship with the buyer. If your relationship with your mother-in-law is the same as Henny's with his, you might be approved. Be forewarned, the agents representing you and the buyer will also be required to sign the form.
Web Reference:  http://www.slohomestore.com/
1 vote
Janne Reddell, Agent, Morro Bay, CA
Thu Aug 14, 2014
The lender may ask you to sign an agreement that states such a sale would not be allowed. Just have your agent call them or write them and disclose the relationship. Then it is the lender's choice as to whether to allow the sale or not. First lien holders are usually more tolerant than second lien holders. If the lender says it is okay, make sure you get it in writing. Your other choice is to get an attorney that specializes in foreclosure defense. They can get the lender's attention. Best of luck
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Sat Nov 19, 2011
Just tell the truth, the whole truth and nothing but the truth, the worse they can do is say no. Good luck,

Info on Lease Option or Rent to Own:
http://www.trulia.com/blog/jimsimms/2011/11/rent_option_or_r…
http://www.trulia.com/blog/jimsimms/2011/11/rent_to_own_continued

Criminal Credit Repair:
http://www.trulia.com/blog/jimsimms/2011/10/credit_repair_ca…

Down Payment Assistance in KY:
http://www.trulia.com/blog/jimsimms/2011/03/down_payment_ass…
0 votes
John Arendsen, Agent, Leucadia, CA
Sat Nov 19, 2011
As others have stated the law requires an "Arm's Length" relationship in distressed property sales other than probate sales.
0 votes
Cynthia Fish…, Agent, Templeton, CA
Wed Nov 16, 2011
Hi Terry - You mention "we" own the property but say only your name is involved in the loan. Important information about how you handle a short sale is this = each one is unique and has different circumstances to work through. Determining your best course of action will be first determined by finding a qualified short sale experienced REALTOR to look at the details as they fit you. Find a REALTOR you trust and connects with you and sit down and review your property details. It could be a "Maybe" that the sale could happen as suggested here, but what ever you do, be upfront and honest in all dealings with the bank, so your decision will not come back to haunt you. We can send you some information with Q&A's to the most common questions going through this process. Please let us know if we can help. Best of luck....Cynthia Fisher, Broker-Owner Morro Bay Realty.
0 votes
Terry Bell, Agent, Santa Rosa, CA
Tue Nov 15, 2011
Most lenders will have you sign a statement that the transaction is what is called an "arm's length" transaction, meaning that you cannot sell to someone that can result in a benefit to you. You should consult with a real estate attorney for advice. Best, Terry Bell, Realtor
0 votes
Dan Reddell, Agent, Morro Bay, CA
Tue Nov 15, 2011
The lender may ask you to sign an agreement that states such a sale would not be allowed. Just have your agent call them or write them and disclose the relationship. Then it is the lender's choice as to whether to allow the sale or not. First lien holders are usually more tolerant than second lien holders. If the lender says it is okay, make sure you get it in writing. Your other choice is to get an attorney that specializes in foreclosure defense. They can get the lender's attention. Best of luck!
0 votes
David Norwood, Agent, ARROYO GRANDE, CA
Tue Nov 15, 2011
Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both.

Follow the link to your new home.
http://www.bop.gov/
Web Reference:  http://dnorwood.com
0 votes
Robert Chome…, , San Diego, CA
Tue Nov 15, 2011
This would not be allowed because it is not an "arms length" transaction.
0 votes
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