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Chula Vista Short Sales: Can You buy Your own Short Sale?

By
Real Estate Agent with Keller Williams Realty

Chula Vista Short Sales CA - My assistant here at Keller Williams in Chula Vista CA recently received a question from Pat. Here is Pat's Question.

"Is it legal for a short sale seller to buy the house he is short selling to reduce his mortgage loan?" asked Pat.

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 mikekwcv@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (619) 743-8884

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chula Vista loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Mike Watson.

Mike is a Real Estate Agent at Keller Williams Realty. Chula Vista Short Sales Realtor:

Phone: (619) 743-8884. mikekwcv@gmail.com.

View My homes for sale at
www.sellingchulavistahomes.com
.

Mike Watson specializes in loan modification assistance and short sales in Chula Vista California. Chula Vista Loan Modification Help, Chula Vista Short Sales. Chula Vista Short Sale Realtor.
Short Sale Realtor. Chula Vista CA Short Sales. Chula Vista 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 Mike Watson's personal views and do not reflect the views of Keller Williams Realty.

Jeanne Kozak
RE/MAX In Action - Martinsburg, WV
REALTOR and Broker/Owner in WV and VA

If I am not mistaken, there is an addendum that the lender will send that the seller and buyer sign that the transaction is an "arm's length" transaction, and I believe it cannot even be a family member.

Jan 11, 2011 02:48 PM
Trent Chapman
Keller Williams -New Future Team - San Marcos, CA

Not all lenders require an arms length affidavit be signed... after all, the lender is merely the beneficiary of a note and not a principal or party to the transaction. 

If the lender does require an arms length affidavit, then your seller can only sell to a party they do not know from business, association or familial relationship.  The buyer has the right to rent or sell back the property to the seller... in most cases.

 

Trent

TheShortSaleGenius.com

Jan 11, 2011 06:13 PM