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Answers (16)
- klarek the realist
- Contributions:7044
"Sounds like you are trying to help out your brother."
Help with what, mortgage fraud?
And yes, this thread is over two years old.
Help with what, mortgage fraud?
And yes, this thread is over two years old.
- Jeff Johnson, "Jeff AJohnson"
- Contributions:12
Sounds like you are trying to help out your brother. Unfortunatly, that would bbe considered a "Arms Length" transaction. Meaning that a family member cannot be the purrchaser.
this thread is 1.5 years old. LEARN TO READ DATES!!!!
- AD SINGH, "AD SINGH"
- Contributions:44
Not a good idea. A lot of lenders would probably treat that as a scam. It is because alot of people in the past ran a scam of doing short sales to reduce the price and let the lenders take the hit. But then again it is your choice to go ahead and try.
- Emily Elmore, "Emily_Elmore"
- Contributions:10
Unless you're able to purchase the house for an amount that would give him what he needs to pay off his mortgage, you are unable to enter into a transaction. This violates the "Arms Length" transaction affidavit-basically a conflict of interest for the bank. This prohibits any relative, real estate agent or person who works for the specific bank to purchase a short sale.
Your best solution would be to either help him make payments if that's his problem, or maybe just make "rent" payments and live in the home until he's able to afford it.
Your best solution would be to either help him make payments if that's his problem, or maybe just make "rent" payments and live in the home until he's able to afford it.
- wetdawgs
- Contributions:26833
Susan Hofflander: Please check the original dates on posts before responding. I hope the person has solved their issue with a question posted 16 months ago.
- Susan Hofflander, "shofflander"
- Contributions:42
Yes, Ginger, this is what was happening and it was fraud then and now. The whole arm's length mind set about this type of transaction is sound.
Sjinmn, if you do want to buy the house, do it outright. Get a mortgage because your brother's lender is not going to let you do a contract for deed. That will effectively end your brother's ownership in the home. If he wants to buy it back from you in a few years, I would suggest you make sure that he has to buy it at market value. If discussing these types of issues will cause problems between you and your brother, it's probably not a good idea for you to enter in to this transaction with him.
Good luck!
Sjinmn, if you do want to buy the house, do it outright. Get a mortgage because your brother's lender is not going to let you do a contract for deed. That will effectively end your brother's ownership in the home. If he wants to buy it back from you in a few years, I would suggest you make sure that he has to buy it at market value. If discussing these types of issues will cause problems between you and your brother, it's probably not a good idea for you to enter in to this transaction with him.
Good luck!
- ginger yalda, "detroit123"
- Contributions:4
its not a fraud, whats the different between she gets someone else with different last name or some stranger buying it. what you call a fraud is what the mortgage industry did and all the builders that were jacking the prices every week over $5000.00 it happened in phx az.
- Rachel Sartain, "Rachel Sartain"
- Contributions:408
DO NOT GET SOMEONE WITH A DIFFERENT LAST NAME TO BUY THE HOUSE. It is called Fraud!
- ginger yalda, "detroit123"
- Contributions:4
you will not be able to buy it with the same last name get some one with different last name good luck.
- Rachel Sartain, "Rachel Sartain"
- Contributions:408
The banks will not allow you to purchase the home from your brother. It must be an 'arms-length' transaction. I would not think about it any longer b/c it just aint gonna happen.
- sunnyview
- Contributions:25139
It is not a good option, please do not do it.
- The Leonardo Team
- Contributions:631
Hi Sj,
Short sale is a way for the borrower to avoid a foreclosure. It is a better way out than letting it go into foreclosure. The process of short sale ( mean short pay) where the borrower sells the house for less than what is owed and does not profit at all from the sale is long and full of steps. If you are not in a hurry to buy it then it might be the right fit for both of you.
Leonardo
think about how this looks to the bank:
Brother A. owns the underwater home. Brother B. buys it, bank loses a bunch of money. Brother B. sells it back to brother A....
The banks will take a dim view of this, as it looks like a fraudulent conveyance, to force the bank to take the loss on dropping price. I would not even think of doing this if I were you, the possibility of a bank fraud charge is far more risk than saving your brother's hide is worth. Let your brother short sell it to a stranger, fix his credit and buy another home in a few years. Buy your own home for yourself when you want to.
Brother A. owns the underwater home. Brother B. buys it, bank loses a bunch of money. Brother B. sells it back to brother A....
The banks will take a dim view of this, as it looks like a fraudulent conveyance, to force the bank to take the loss on dropping price. I would not even think of doing this if I were you, the possibility of a bank fraud charge is far more risk than saving your brother's hide is worth. Let your brother short sell it to a stranger, fix his credit and buy another home in a few years. Buy your own home for yourself when you want to.
- sunnyview
- Contributions:25139
I hate to say bad things, but this deal sounds like trouble. Family real estate can lead to many problems. Think about how you brother will feel if he can't buy the house back. Or how you will feel if the price goes up in a few years and he wants to pay you only the short sale price. I have seen this happen firsthand, so please consider the situation and make sure that you understand the strain that this could put on you and your whole extended family if it does not go as planned.
My brother is trying to short sale his house and I am considering buying it. Good or bad idea?
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