Reader's Question:
My son in law and daughter are losing their home to foreclosure and the home is currently offered for sale as a short sale. The Realtor suggested that maybe a member of my family buy the house in an effort to save it. Do you think I could buy the property under my name and at a lower price and then resell the home back to my daughter at the new, cheaper price? [name omitted]
Christian's Response:
With the utmost respect, I kindly suggest to you – Get a new Realtor. A question like that sends shivers down my spine. I am assuming that the Realtor suggested that avenue since your daughter has a different last name due to marriage. Although your daughter is married and may carry a different last name, that approach is completely unethical putting it mildly.
Although, I am not an attorney, that action could very well be interpreted as LENDER FRAUD. If the lender were to find out, it could very well turn into a nightmare for all parties involved. If you've read some of my past postings on this site, you would know that I am not a big fan of the lenders but stupid they are not.
In my opinion, I would stay clear of that situation. If you want to assist your daughter and son in law, assist them by seeking out a qualified attorney that would provide a loan modification for them.
If they decide they do not intend to keep the home, short sale is the best approach.
In my opinion, the buyers must be a neutral, independent third party, or investor not related to any member of the family otherwise you are knocking on the door of trouble and the lenders may just answer.
My son in law and daughter are losing their home to foreclosure and the home is currently offered for sale as a short sale. The Realtor suggested that maybe a member of my family buy the house in an effort to save it. Do you think I could buy the property under my name and at a lower price and then resell the home back to my daughter at the new, cheaper price? [name omitted]
Christian's Response:
With the utmost respect, I kindly suggest to you – Get a new Realtor. A question like that sends shivers down my spine. I am assuming that the Realtor suggested that avenue since your daughter has a different last name due to marriage. Although your daughter is married and may carry a different last name, that approach is completely unethical putting it mildly.
Although, I am not an attorney, that action could very well be interpreted as LENDER FRAUD. If the lender were to find out, it could very well turn into a nightmare for all parties involved. If you've read some of my past postings on this site, you would know that I am not a big fan of the lenders but stupid they are not.
In my opinion, I would stay clear of that situation. If you want to assist your daughter and son in law, assist them by seeking out a qualified attorney that would provide a loan modification for them.
If they decide they do not intend to keep the home, short sale is the best approach.
In my opinion, the buyers must be a neutral, independent third party, or investor not related to any member of the family otherwise you are knocking on the door of trouble and the lenders may just answer.
