I recently closed a short sale and the bank wanted the new buyers to sign a form called an Arm's Length form.  I was wondering why they would have the new buyers and seller sign this form.  Now, I realized that many home sellers don't want to lose their homes, so they are trying to sell them to a relative for a good deal.  Is this wrong?  Well, I suppose it could be if the seller is going to try to purchase the property back through a grant deed or rent it for a while and then try to purchase it from the relative.

I can totally understand it, but then I can understand the bank's point of view as well.  So, It makes sense to me to have this form signed stating that the seller is not selling to a relative or anyone else that they may purchase the home from at a later date.  It is just sad to me that many banks still are not working with buyers to do loan modifications to help make their payments lower.  If the banks could or would be able to make the payments lower in some way, it would be a win win for everyone.  I just hope the banks will really try to help homeowners.  Right now, I am not seeing many loan modifications work for people and they are having to do short sales.  Right now, in Rancho Cucamonga, there are over 55% of homes in foreclosure.  And, the banks are not releasing the homes for sale which is creating a whole other problem!

Joan Patterson, B.A., G.R.I., A.S.P., Realtor, License #01431647
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730

951-204-1864
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