Got an appvl from Chase in 3 weeks, sellers were not expecting it so fast. We need to close by the end of Feb but sellers can't move until May 15th since they are leaving the country and have no where else to go in the meantime. I am ready to prepare a post occupancy agreement and will send to negotiator from Chase as well. Have someone had this condition approved by lender before? I am very clear about the "Arm's length"
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Chase's ALT form expressly states sellers may not remain on the property:
"5. There is no agreement, whether oral, written, or implied, between the seller(s) and the Buyers and/or their respective agents which allows the sellers to remain in the property as tenants or to regain ownership of the Property at any time after the consummation of this sale transaction."
This should have been part of your approval letter.
Now, if you want them to live there I would imagine you would have to have it in writing from Chase that it's ok. I've never attempted that, but I believe anything is possible.
Buyers are not investors, house is a little over 3,000 sq/ft and can't get an apt for 2.5 months. Sellers are relocating to Ecuador and they have to be physically there to receive the furnitures etc. Buyers agreed to leave the sellers in the property but my main concern is if the short sale lender will allow this.
I've never done this. The buyers agreed to this? I wouldn't allow this. I guess if the buyer is an investor who intended to rent the property anyways, it may work, but I've never been under the impression that allowing a seller to remain in the property is a good idea. Why can't they move to an apartment for a few months?