On a Short Sale, can I sell my property to my Wife, Brother, or my own Company?

By
Real Estate Agent with Allison James Estates & Homes, Sarasota 941-957-3737

 

In a Short Sale, lenders often request that the buyer and seller sign an Affidavit of "Arms Length Transaction".

This affidavit usually states wording such as; 

"No party to this contract is a family member, business associate, or share a business associate, or share sare a business interest with the mortgagee".   Furthermore, there

Are no hidden terms or special understandings between the seller or buyer or their agents or Mortgagee.  The  Buyers and Sellers nor their Agents have any agreements written or implied that will allow the Seller to remain in the property as renters or regain ownership of said property at anytime after the execution of this short sale transaction.  None of the parties shall receive any proceeds from this transaction except the sales commission.  The atransaticn may not involve a third party who received a deed prior to this closing or after this closing and before recording of the deed to the purchaser.   All parties verify that the HUD1 Settlement Statement is accurate and truthfully disclose all aspects of the transaction, that Buyers and Sellers received no payment, credit or other consideration except as shown in the HUD1 Settlement Statement, and the there has been no collusion between the Seller, Buyer, Broker, or any other Person, to misrepresent any fact to the Lender" 

The simple answer to the question, "On a Short Sale, can I sell my property to my Wife, Brother, or my own Company? ... The answer is NO.

 

Posted by

For more information on Short Sales in Sarasota and Foreclosures in Sarasota, please CONTACT USWe have over 25 years experience in real estate, and have been highly successful in negotiating short sales in Sarasota County & Manatee County, Florida.

Troy Funk, CDPE, SFR
Sarasota Certified Distressed Property Expert
Sarasota Short Sales & Foreclosures Resource
Florida Licensed Real Estate Agent

Allison James Estates & Homes
665 S. Orange Ave. #2
Sarasota, FL 34236
(941) 365-8769
Troy@FunkFL.com

SarasotaShortSaleNEWS.com

WATCH this Sarasota Short Sale Testimonial Video

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Charles Stallions 12/23/2012 04:20 AM
Topic:
ActiveRain Community
Location:
Florida Sarasota County
Tags:
sarasota short sale
short sale sarasota
who can i sell my short sale to
buyer of my short sale

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Rainer
161,058
StapletonHomeTeam KnopHomeTeam Distinctive Properties
Distinctive Properties - Denver, CO
For an UnReal Estate Experience call the Knop Home

And to top it all off it feels yucky. But I do know it's out there, especially the renting back to previous owners.

Sep 30, 2010 03:46 PM #1
Rainmaker
429,501
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

The lenders are just trying to prevent as much short sale fraud as possible. 

Sep 30, 2010 03:59 PM #2
Rainer
76,413
Sherilyn M. Whistler
ERA Herman Group Real Estate-NoCo - Loveland, CO
Need a Referral, Call Me !

I absolutely enjoy your blogs and check your site out daily ! Thank you for the wonderful content...

Sep 30, 2010 05:55 PM #3
Ambassador
463,748
Terrie Leighton
Ferrari-Lund Real Estate - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

Nice explanation of the "Arms Length Transaction" Troy. Very important to let sellers know they cannot sell their property to relatives when pursuing a short sale on their home.

Oct 01, 2010 02:48 AM #4
Rainmaker
671,938
Sandy Shores FL Realtor®, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County Real Estate, Florida's Space Coast

Troy, This is a question that comes up quite a bit. Thanks for getting the word out.

Oct 06, 2010 07:43 AM #5
Rainmaker
3,064,059
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Short Sale Buyers and Sellers who ignore the Arms Length requirements risk legal consequences - both criminal and civil.

Dec 15, 2010 12:17 AM #6
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Rainer
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