Advise on buying a short sale:
Is it possible to buy a short sale from a relative (sister, same last name)? (I want to rent the house back to her). Bank would approve the short sale?
Which way can accomplish this? Should I make the offer through a LLC or Trust? Is there any legal issue on doing this?
Any advise on best way to do it? Thanks!
Most lenders will require the seller to sign an arms-length disclosure that will require her to represent that she will not have an interest in the property, including a leasehold interest.
Has the home been listed on the MLS? How long? any offers? I suggest that you ask your attorney to prepare a disclosure statement declaring your relationship and providing facts that support your offer (i.e. home has been on the market for x months; your offer is the best offer etc.). Include language similar to: …the property has been subjected to the MLS for___months, said offer is the highest and best offer and therefore deemed to represent current market value.
Address this issue up front to avoid wasting time. Good luck.