You Can’t Benefit from a Short Sale

I recently took a call from a seller who had their hours at work cut in half and wanted to do a short sale to prevent a foreclosure on their house. They met all of the criteria for us to do the short sale. As we were finishing our conversation, they told me that they wanted to sell the house to their brother, who was going to rent it back to them. Uh, oh. No can do. I told him that he can go ahead with the short sale, but could not sell it to a family member and reside in the house again. Benefiting from a short sale would be considered mortgage fraud. This is a federal crime and the FBI is all over things like this. He was shocked, and grateful that I had told him about this as he didn’t want to break any laws or end up in a federal prison.

They decided that the short sale was still their best option and that they would work with us to find a buyer for the house- who of course isn’t related to them.

If you’re facing difficult times and need help preventing a foreclosure on your home, give me a call. I’d be happy to discuss your options with you.


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