Can you sell a short sale to a family member?

Can you sell a short sale to a family member?

Short Sale Laws There’s no actual law against short selling your home to a relative, but even so you could end up breaking the law. If you’ve short sold your home and your lender suspects collusion between you and the buyer it could sue you for damages or claim criminal fraud.

Can I buy back my short sale?

In most cases, though, a buyback is not legally permitted. All in all, you’re typically better off to sell your home as a short sale, move out and rent something else for a few years, and then buy a home similar to the one you used to own at probably half of its original cost.

Can I buy my own short sale?

Answer: No, unless you were granted prior approval from your lender or servicer. Absent such approval, repurchasing your own home, after you sold it through a short sale, is fraudulent and a criminal offense. The short sale listing may also state that no showings are available at the time of listing.

Can I sell my house to my sister for $1?

The short answer is yes. You can sell property to anyone you like at any price if you own it. The Internal Revenue Service takes the position that you’re making a $199,999 gift if you sell for $1 and the home’s fair market value is $200,000, even if you sell to your child.

Can a friend or relative short sell your house?

If the seller signs the agreement and continues with a short sale to a friend or relative, then the seller may be legally charged with breach of contract or fraud. As mentioned before, most parties that are interested in short selling a property to a friend or relative only have good intentions in mind.

Is it against the law to sell a short sale to a family member?

We are expert investors that are experienced in helping stop foreclosures. Although it is generally frowned upon, and in most cases will never occur, it is not against the law to sell your short sale property to a family member, if the lender agrees to the exemption of the arm’s length law.

Can you sell your home to a family member?

The answer is no. Even in today’s up and down market, there are willing and able buyers who will purchase a short sale property. So, lenders are weary of allowing the exemption, even if you can convince them the sale to a family member is the highest possible offer they are going to receive on the home.

What happens if you short sell your home?

Because a short sale typically means a major loss to your lender, they won’t allow the transaction to occur, unless of course it is a cheaper alternative than the foreclosure. If they approve the short sale, it will count against the mortgage payments which were missed, and settle the mortgage owed on the home.

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