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BEWARE of the "Arms-Length Transaction" rule.
ATTENTION AGENTS:  What is an "Arms-Length Transaction"?

Well, when you are talking about a Short Sale transaction, this means that the Buyer cannot be related to the Seller and neither can be related to the Real Estate Agents.  So what does this mean for you?  Let's say that your aunt is one of the best Agents in town.  Of course you'd want her to sell your home, (or be your Buyer Representative), right?
Too bad.
More & more I am seeing the banks kill deals because it's not an arms-length transaction.  It might have just happened to me today!  (Of course, I'm not sure yet because bank reps seem to have a once-per-day limit of answering their phones) ...
Then I got the fax.You see, we've been working on the sale of my neice's home since August  ... We clearly disclosed in the purchase agreement that "the Seller is related to the Listing Agent" and "the Buyer is related to the Selling Agent".  We were told a month ago that our submitted offer was accepted, but had to go through additional approval via RHS (Rural Housing).  Okay, we can be patient.  And, luckily, the Buyer decided to hang in there ... more

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