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.