short sell to family

[floridagirl23]

can you do a short sale to a family member? my mom is interested in purchasing my property and was told family could not purchase it but I am not sure how they would not be able to tell.

[Slim Shavings]

Lady that came here from Titanium said no problem. They would work it out. Don't know ow much truth in that. if they have a different name than your last name who would know. Just me wondering

[davephx]

Before you can sell to related party I believe it has to be on MLS at the same price for some period of time.

[Evan Bedard]

Before you can sell to related party I believe it has to be on MLS at the same price for some period of time.

Yes I believe Davephx is correct. Many lenders will require the property to be listed for at least three months before they will aprove the short sale.

[rbolski_in_NV]

Arms length is required. In the offer we received there was a page or two talking directly to this and I had to acknowledge that I wasn't related. Stop by your local real estate office and get a copy. It has to be standard paper work. From that, you can decide how you want to play.

[HopingtoFind]

Most lenders in a Short sale transaction require you to sign a document that states that you have no relationship with the buyer. Buyer cannot be a relative, a friend or related to you in any other way.
If you sell your house to your relative and sign the document this would be considered fraud by the lender and they can file criminal charges.

[davephx]

But I would think a lender could agree if the relative was paying what the bank would otherwise agree to a short sale price. Obviously the bank would have to sign off on it but it might makes sense for a willing buyer and the right price.