I have a loan thru Countrywide/BOA. My mortgage balance is aprox 550k. My monthly payments about 4100 per month. I am a real estate broker and income is way down.My annual income is currently aprox 25k which I can document thru tax returns. I celarly can not come close to affording this house. The good news is that I have a family member who is willing to purchase this house cash.. A recent short sale comp came in at 450k right behind our house and very simmilar to ours.. We would disclose up front he is a relative, we are not trying to cover anything up at all. He would also state that he would not sell the house for at least 7-10 yrs. He want us to have a home .I can not get past step 1 when I state buyer is family member. Any ideas who I can talk to at BOA,, Thanks So Much!!

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Larry, unfortunately there isn't one particular person that you can talk to at BofA. It is not that cut and dried. Is your relative going to buy the home to live in it or do they plan to rent it back to you? Could be a sticky situation. I will be interested to hear what the members here say.
On another note, Please put your last name in your profile as it is forum rules for everyone to have their first and last name in their profile.
Thanks
Jeff Payne
Thanks so much for the reply. Sorry my last name is Lessin I will try to add to my profile.My relative wants me to live there and he will probally not charge me any rent. He is doing this just to help us out as he wants to make sure we have a nice play to live. He will not sell for at least 7 years probally longer and we will put in writing whatever BOA needs. We are not trying to profit from this situation and basically if they will not sell it to relative we can not afford payments and we would be forced to move out and probally have to do a short sale to someone else. It would benifit BOA and there investor most if they could deal with relative purchasing directly I just cant get past step one with BOA when they hear family member is buyer.Thanks!!!
Sounds like you need to do a loan mod instead. Have you tried to do a loan modification?

larry said:
Thanks so much for the reply. Sorry my last name is Lessin I will try to add to my profile.My relative wants me to live there and he will probally not charge me any rent. He is doing this just to help us out as he wants to make sure we have a nice play to live. He will not sell for at least 7 years probally longer and we will put in writing whatever BOA needs. We are not trying to profit from this situation and basically if they will not sell it to relative we can not afford payments and we would be forced to move out and probally have to do a short sale to someone else. It would benifit BOA and there investor most if they could deal with relative purchasing directly I just cant get past step one with BOA when they hear family member is buyer.Thanks!!!
I have done 85 short sales in the past two years and not once have I gotten a "non" arms length short sale accomplished. Not once. While some were completely in the gray area and I informed the buyer and seller that I would not touch it, some made absolutely perfect sense (like yours) but the bank would not approve the sale. I am also interested to hear what members say on this one.

Mori
Larry, I haven't seen any Lender that would agree to this. It would be really nice for you yet the Lenders aren't willing to do any favors to a short sale seller as they don't want to see you benefiting in any way. They seem to be happier in seeing a stranger enjoy the benefits of a short sale. It's great that you want to be honest yet in doing so the Lenders aren't going to agree to it. I really haven't heard anybody accomplish this.
Larry, I agree with everyone who commented. I don't believe any banks will want to do that kind of a transaction if it is not 'arms length'. It doesn't make sense but the banks see it differently when both sellers and buyers are related.
Not only are they not allowing such if you are uploading to REO trans they want the buyers first 5SS #, date of birth, address to ensure they are NOT relatives.I am uploading my first bofa short sale online.

Remember, they are doing short sales as favors.......they would get more money if it foreclosed, after all the government is bailing them out and then they will turn around and sell it and actually make a profit.

Now if they have Mortgage Insurance on the loan, they will be doing quite nicely.
If the mortgage loan is not a Fannie or Freddie ("GSE") owned note then you may not have a problem. The GSEs are the ones that typically prohibit non-arms length transactions. However, if the investors are now operating under the new HAFA program. Additionally, we have accomplished short refinances in which the Lender accepts the net funds they expect to receive in a short sale and the Borrower remains in the property through providing replacement financing using the lower valuation. The Borrower must be able to qualify for a new mortgage or bring another Borrower into the transaction.
You can have them create a Trust or LLC and purchase it though the entity. You can even have a truste or LLC Manager that is not related and that should be fine!
Hi Daniel, just so you know... what you advised is highly, highly illegal and can cause realtors to lose their license or even worse, end up in jail. If you have an affidavit saying the seller can in no way benefit from the sale of this transaction to include repurchasing the property, renting the property or having someone relative either by blood or by a common interest or understanding, you might want to make sure you consult with your real estate attorney before signing it and then doing the exact opposite. Just my opinion!

Daniel Wolkoff said:
You can have them create a Trust or LLC and purchase it though the entity. You can even have a truste or LLC Manager that is not related and that should be fine!
Jeff- with income of 25K a year there is not way that Larry is going to be approved for a loan mod.
Larry- We do get non arms lengths approved but the situation has to be very dire and very convincing.
I will post on my blog next week the one we just got approved. I won't tell the story until after it closes.
But being that you are a realtor they are going to be very resistant to a non arms length in your particular situation. Also, your story is not convincing enough to the lender as the only hardship you have is financial. Lenders don't like the homeowner to benefit. You can try because most all of it is going to depend on who owns the note.
Katerina, I am dealing with this situation with Capital One the credit card company I guess they did loans. Can you tell me how to find your blog as I am new to this site?

Thanks
Catherine gheen

Katerina Gasset said:
Jeff- with income of 25K a year there is not way that Larry is going to be approved for a loan mod.
Larry- We do get non arms lengths approved but the situation has to be very dire and very convincing.
I will post on my blog next week the one we just got approved. I won't tell the story until after it closes.
But being that you are a realtor they are going to be very resistant to a non arms length in your particular situation. Also, your story is not convincing enough to the lender as the only hardship you have is financial. Lenders don't like the homeowner to benefit. You can try because most all of it is going to depend on who owns the note.

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