In what situations is a short sale then buy back legitimate?
June 1, 2011 9:16 AM Subscribe
Short sale, then buy back?
posted by anonymous to Law & Government (3 answers total)
Asking for a friend.
The question: How likely is it that the bank would allow the sale back to my friend in two years? She knows her husband trying to buy it back would be fraud & unlikely to happen. But, what about her?
- They're underwater on their mortgage.
- Friend is a woman, currently going through divorce, lives in the house with their two daughters.
- Husband is sole signatory on current mortgage, has moved out of the house, & stopped making mortgage payments in January.
- The only place where friend 'signed' was on line of credit account when the house was refinanced a couple years ago. She was not a signatory on the new mortgage per se. Her name is on the deed.
- An acquaintance has agreed to buy the house as a short sale, and then re-sell it back to my friend in two years, for a profit of course.
She's having a difficult time getting a realtor to weigh in on the legality of the future sale back.
She's in Michigan, and if you could recommend a realtor or real estate lawyer in the Detroit area that deals with things like this, bonus!