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Short Sale Disclosure/Obligation

Posted on: Sun, 09/26/2010 - 04:33
Short Sale Disclosure/Obligation

Seller wants to short sale his house. Seller wants to have an agreement in place with the investor where, after the short sale, the seller will remain in the house and will rent the house with an option to buy the house for 10% above short sale price. Having this contract in place BEFORE the bank agrees to the short sale, is either party required or obligated to disclose it to the bank? I am familiar with these agreements being in place with pre-foreclosure properties, but not short sales. Is that type of arrangement bordering on fraud? Thanks for your replies.

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Posted on: Thu, 09/30/2010 - 21:28 #1
Short Sale

You should really check into the laws of your state prior to making any agreement like this in writing with a homeowner who has missed payments intentionally. I am not an attorney but you should error on the side of caution in this particular issue!!! Please contact an attorney in your area on how to address this issue! I hope that this information helps!

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Posted on: Thu, 09/30/2010 - 21:34 #2
CHECK CAREFULLY!

The owner who is doing the short sale can not get ANY benefit from it other than to get out of the loan, and can not have any interest in the property after the sale as far as I understand it.

There is a new government program that pays a person doing a short sale 3K.


Posted on: Fri, 10/01/2010 - 05:58 #3
Disclosure

I myself am not involved in this particular deal. This is someone else's deal. I was having a discussion about it with a real estate agent and he said it was OK, as long as the bank agreed on the price, the investor was free to do what he wanted with the property. I told him at best it was a gray area and could border on fraud. The seller is representing hardship to the bank on one hand and cutting a deal for an option to buy the property back at a 10% premium on the other hand....doesn't seem right to me, but I guess that's why we have attorneys and courts of law.