Windermere, FL – The Stop Foreclosure Institute recently received a question from Mau. Here is Mau's Question.
"Is it legal for a short sale seller to buy the house he is selling on short to reduce his mortgage loan?” asked Mau.
Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.
Here was our answer. We don’t know of any law on the books that forbids a person from buying a home they are short selling. Here is what we do know.
Most banks and lenders don’t allow it. If the short sale negotiator sees a sales contract with you as the buyer, then they won’t approve the short sale.
Sure, you could do fishy paperwork to buy the home yourself. But, you risk getting in trouble for fraud if you were caught.
I think the biggest reason people aren’t trying this is because they can’t get a loan after a short sale. You aren’t able to buy another house for 2 years after a short sale.
There is an FHA loan program that allows you to buy after a short sale. But, one of the stipulations is that you must be buying a smaller or inferior home.
If you are looking to reduce your mortgage loan, do it the legal way. Get a loan modification with your current lender. Or, short sale your current home, rent for 2 years, and then buy a new home.
That allows you to wipe out the upside down debt and move on with your life. And best of all, you aren’t at risk of going to jail for fraud.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at gitta@gitta.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (407) 330-2181.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Windermere Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Gitta Urbainczyk P.A..
Gitta is a Real Estate Broker at Keller Williams Heritage Realty. Phone: (407) 330-2181. Email: gitta@gitta.com.
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Windermere Short Sale Realtor. Windermere FL Short Sales. Windermere Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Gitta Urbainczyk P.A.'s personal views and do not reflect the views of Keller Williams Heritage Realty. This information is provided as a courtesy to our viewers to help them make informed decisions.
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