I received a HAFA approval and it has language for arms length transaction...I represent the seller.
The buyer is the seller's daughters mother in law...is this a problem?
Thanks from Pismo Beach.
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Does anyone have a specific CHASE Arms length Affidavit Socument that they dont mind sharing. I closed a file last week and they are threatening to send the funds back to the title company if we dont provide this document.
That is not an arms length transaction. If you want that to go through don't disclose and don't hold your breath.
Any member of the family is not arms length. The arms length document has to be signed and notarized by all parties to the transaction. Your real estate career is on the line. I would look for another buyer as they may pull the short sale if they find out the buyer is related.
IMO it walks and quacks like a duck. I'm surprised you weren't aware that you and all parties to the transaction would be presented with an arm's length transaction affadavit. It is imperative that the relationship is disclosed.
Chase will deny it, flat out. The relationships does not have to be blood relationship. Its a grey area but if you know them (friends, neighbors, business associates, etc.) it will get denied.
Vernice, this shouldn't be a problem as the buyer wouldn't be a blood relative as described. The buyer's name, therefore, shouldn't bear any semblance to the seller's name on the contract and should just fly through the review process.
The buyer and seller are related by marriage. Blood or not, they are still related. If the daughter has a child, both the seller and the buyer would be a grandparent to the child. That demostrates a strong relationship between the two parties. Not disclosing the relationship could open all parties involved to a possible mortgage fraud involvement.
Disclose Disclose Disclose The banks are becoming highly sensitve to Fraud. Their definition will be different than yours!
It's a problem. If you are questioning it, the bank will too. I was told by BOA that listing my son's short sale would make it a non arms length transaction. The familial status was disclosed in the listing and I was not a dual agent. There was no relationship in any way shape or form between seller and buyer. My broker had to handle the transaction.
The Biggest challenge for the Bank is are the getting all they can for the property. Do you have multiple offers on the property? If not Price the property to allow the market place to define market value Mother in laws PP should be 5K higher than highest bid. As long as you have the seller permission you can disclose Bids. Disclose bids and ALL facts to bank and let the Chips where they may.Be sure all bidders Know it is an open bid.
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