If my home is in foreclosure, can I short sale the home back to myself?
Question:
Answer:
No, but you could sell it to a relative for the full mortgage value plus any associated closing fees. Your best answer is to restructure the mortgage.
Work with your creditor, they usually what their money, not your house.
I don't think so. First off I've never heard of short selling a house. Second you can't sell short what you already own; that's a long sale. Third what are you going to do about a mortgage, since the proceeds of the sale will go to pay off the mortgage and then you need another mortgage to buy it back?
No, and you cannot sell it to yourself or a relative as a bailout loan. Most lenders will frown upon this, it appears like you went into foreclosure to gain an advantage. Although is the relative has a different last name what the lender does not know can't be used against you.
No. You also cannot sell it to a relative. the bank will be looking for an "arms length" transaction.
"Fraud" is the proper term if relationships are not disclosed.
However, you can negotiate with the bank to restructure your loan with them.
A short sale is when your current lender agrees to being paid off at an amount lesser than what you owe to them. I work in the escrow business and with the rates going up and values going down a lot more people are getting forced to short sale on their property. We have had quite a few transactions cancelled because the current owner tried to sell the property to a relative. The lender checks such things and cancels the deal. The best thing to do is find a realtor that can be willing to lend you the money to bring the loan up to date or at least to refinance out of the current one.
Never, never obtain a loan with a neg-am mortgage because you never know what the value of the property will be in 1 or 2 yrs when you go to refinance it.
No, the bank and title company and county won't like that at all. Since the property isn't actually changing hands, it's not even really a sale. You seem to be trying to get the lender to modify the terms of the loan and disguising it as a sale to yourself.
You can try selling it to an investor or a friend/family member with a different last name, who can then sell it right back to you. That's always a possibility, but with tighter lending regulations right now, it may be more difficult for anyone to get approved for a loan without having a down payment of some sort and decent credit.
Selling to someone else who can then sell the property to you is a much more viable solution to foreclosure than short selling the property to yourself. Or you can just ask the lender for a mortgage modification and see if they approve you for one. That may lower your payment or help you get back on track with your current mortgage company, if no one can purchase the home.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
No. Your current mortgage company would not allow a short sale to yourself. However, I have known some investors who will buy your house from you and rent it back to you with an option to buy/right of first refusal. This has allowed some people to avoid foreclosure, keep their house and get reorganized financially making them able to re-purchase their homes. If you can't find anyone who will do this, you could also ask your current lender if they will accept a deed in lieu of foreclosure. You would still lose the house, but not to foreclosure. Therefore, your credit will not be hit with the foreclosure and you could be applying for another mortgage as soon as you are ready.
More Related Questions & Answers...