Short Sale Realtors Serving: Macomb ■ Oakland ■ Lapeer ■ St Clair ■ Wayne ■ Genesee Counties
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||
Can sell your home short sale to a family member?
Well, the quick answer is no, and that is because they require an arm’s length transaction.
An
arms-length affidavit is a document created by
a short
sale bank in an
attempt to prevent sellers from selling to a relative and to curb mortgage
fraud.
The
reason the bank does not want a seller to transfer title to a relative in a
short sale
is because sellers cannot profit from
a short
sale.
Sometimes
sellers make side agreements with relatives or friends to act as a straw buyer.
Then, after the transaction closes, those pretend buyers quickly transfer title
back to the seller.
This
practice, in affect, means the sellers have repurchased their home
at maybe half the cost, which greatly benefits those sellers.
But banks make the rules, and banks say sellers can't benefit.
If they
wanted sellers to benefit, they would have agreed to a
loan modification.
Which we all know is almost impossible to get.
If you haven’t seen the video about the dirty little secret of loan
modifications, scroll up this page and click the link.
If you
sign an arms-length affidavit on your short sale and then violate it, you
could be held liable for mortgage fraud.
Mortgage fraud falls under jurisdiction of the F.B.I. Moreover, if anybody tells
you that it's
OK to sell to a relative, make sure that you clarify your relationship with the
buyer to the bank before closing.
We don't know of any banks that will let you do it.
We realize this doesn't sound fair, but it's how banks have decided to handle it.
Don’t let this be a reason to let your home go into foreclosure.
If you haven’t seen session #1…. Do it now.
We’ll
cover what a deficiency judgement is.
Last thing you want is to be on the hook for the bank losses for the rest of
your life.
If you have any questions about short sales call or email us.
And be sure to call Jerry Smith and Brian LaDue if you would like to short sale your home.
We are
“Your Michigan Short Sale Specialists”
Contact Us Anytime:
Brian LaDue
Short Sale Specialist
(248) 787-8644
shortsale@walkawaydebtfree.com
