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I agree. BUT how are the banks supposed to know? It would create havoc and delays while they tried to figure out of the transaction is arms length or not.
So is it that most banks just won't allow this, or is it actually illegal? If you find a bank that doesn't make you sign the "arms length affidavit", are we safe to sell it to an investor who rents it back to the original owner?
So is it that most banks just won't allow this, or is it actually illegal? If you find a bank that doesn't make you sign the "arms length affidavit", are we safe to sell it to an investor who rents it back to the original owner?
In a "normal" sale we are not asked to sign an "arm's length" affidavit, however, banks in a short sale are requiring the seller's, buyer's AND agent's to sign and in some cases NOTARIZE an arm's length affidavit that states that there is no business arrangements written or implied to rent back to the seller. If you sign this and you know of this arrangement then it is bank fraud.
Eric Stevenson said:So is it that most banks just won't allow this, or is it actually illegal? If you find a bank that doesn't make you sign the "arms length affidavit", are we safe to sell it to an investor who rents it back to the original owner?
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