I need opinion from short sale / legal expert.
I have a seller who wants me to short sale her house and buy for cash.
Then sell it back to her mother-in-law who has good credit and income.
Are there any legal ramifications here?
Eric E
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Replies
Ankit:
Thanks for your reply.
I guess my question would be: How long do I need to hold it??
It is a 2 family. The kids are the owners, mom is the tenant.
I would sell the house to MOM, Mom would become the new owner , kids would be the new tenant.
how convoluted is that??
EE
So here is my two cents on it as a real estate investor not a lawyer or short sale expert. A few questions do come up in mind:
1) How long will you be holding the asset after purchase?
2) Will the mother-in-law be moving into the property or just keep the current seller as tenant?
I think legal implications may occur if the mother-in-law just acts as a straw buyer and then transfers the title back to the current seller after her purchase is completed from your end. As that may violate the arms-length affidavit. If just buys it off you and keeps the current seller as tenant. I do not really see a legal implication with that.