have a short sale where ASC is the first trust. The short sale property has been rented out and the tenant wants to buy it. ASC is saying that they will not accept the offer from the tenant, as they consider it to not be an arms length transaction due to the "business relationship" that the lease creates. has anyone else dealt with this? I was not aware of this definition, and thought that a tenant could make the offer on a short sale. thank you for comments.
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I read a lot about people who can predict your fate and future by your hand. To be honest, I'm a little skeptical about this. I prefer psychics. I always prepare a list of questions before readings. So, I can ask a psychic a question, and often I get really cool and useful tips, which I then apply in order to change my life for the better.
Ron, criminal act? Banks are vindictive and lazy. What is the criminal act for someone buying a property at market value? Only a banker could call that criminal. If you could count on a real absolute value for a property, you wouldn't need the lazy arms-length - which assumes all relatives are thieves and anyone in business with anyone else is a thief, oh, excuse me, unless he is a banker. A bank will not let a seller buy the property because he'd "profit" from it. The seller can buy the exact same value property next door and that is OK. So, basically, the bank insists upon the seller having to pay to move. Is that not just plain vindictive? OK, it is lazy, too - assuming that it makes it more likely that a seller will try to get a low price (unlike every other buyer for a property? Do they all try to pay as much as possible to the bank??).
Why doesn't the bank actually do what they claim to everyone that they are doing and evaluate the property? If they have done so, then what is this criminal thing that a tenant is doing by buying a property at market value and not having to pay to uproot his family and move?
A business relationship? Like with the IRS that the tenant also has to pay? Yeah, I can see why they would be in cahoots to sell the property at the bank evaluated market value. And the crime is what?
There seems to be two sides being taken by the commenters. One is that ASC is wrong and one that they are right.
My take is that, yes a tenant / landlord relationship is a business relationship, but so is doctor and patient. There are some "carve-outs" that common sense applies when using the English language.
On the other hand, as I often say, "no one is 'entitled' to a short sale". There is no law that says a short sale must be approved.
Thus even bad decisions can prevail for no reason at all.
Amen Richard LOL
I have sold 4 short sales to tenants. It would be in the language of the Arm's Length.
Did you write that language in the arm's length??
I think this thread has gone off the rails a bit. The short sale lender can deny a short sale for any reason they want. The most common reasons (except for issues related to the Borrower/Seller) are unacceptable price/net proceeds and unacceptable buyer. The Arm's Length issue is a buyer issue. If you think there may be a law that prevents the bank from denying a short sale due to the buyer being a tenant in the house, or the Arm's Length Transaction Affidavit that the bank supplies is vague and you are not sure if it covers a tenant then you need to advise your seller client to seek legal counsel.
Way to sum it up Jim.
Does Lisa’s property have a NOD or NTS? The answer to this important, as it applies to what counsel to offer said tenant.
Short Sales Superstars learn about Tenant Rights as it applied in Short Sale - as well as a property in with a NOD and NTS.
The foreclosure crisis has been devastating for many tenants. And although the PTFA (look it up) has been in place for more than three years, its implementation has been spotty. By knowing its provisions, agents can play an important role in preventing tenants from being precipitously, or illegally, forced from their homes.
Agents read up on the law, as the DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT has guidelines. Some state or local laws provide even more protections for tenants, so it is important to consult the applicable local law.
Here is a short list of places to start your education:
How did we go from can a tenant buy the home to........ preventing tenants from being precipitously, or illegally, forced from their homes.
Looks to be two separate issues
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