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Can short seller buy his home back 4 years later?

Posted by Pacita C Dimacali on July 8, 2013 at 9:00am

This is a first for me.

I heard about a short sale seller who sold his house in 2009. Several years later, they find out that the buyer is selling the house. The previous owner loved that house and would like to buy it back.

Are there any rules to prevent him from doing so? He has already repaired his credit and in a better financial situation today than before.
He doesn't know who the current owner is....but he has been driving by the house he lost, and found out it's going on for sale.

Comments?

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Comments

Pacita C Dimacali July 29, 2013 at 7:15am

The current owners used another bank to buy the property when it was a short sale the first time. The current owner isn't thinking of selling the house as a short sale since the property has already appreciated a bit since she bought it. She isn't in distress, just wants to sell.
Jeff Payne July 29, 2013 at 6:44am

A.W. The previous bank would take another loss? Are you assuming the buyer would use the previous short sale lender to finance it?
A.W. July 29, 2013 at 6:17am

I think your buyer would be safer to just find another home that is similar with a different bank asset. I personally can't see the same bank agreeing to let them do it. The bank took a lose once before with them and probably see taking another lose in the future with the same house? I'm thinking they won't agree though you never know won't hurt to ask? It seems these days the rule "WHATEVER" seems to apply depending what the convenience will be for the bank. In the meantime, they should seek advice from an attorney.
Pacita C Dimacali July 8, 2013 at 4:54pm

Thanks, Kevin
Kevin - Greenville, SC July 8, 2013 at 3:04pm

I can't imagine why they would be prevented from buying it if they qualify, but I'd run it by an Attorney.
Jeff Payne July 8, 2013 at 10:28am

Even if they signed the arms length transactions affidavit, does that document have any bearing on anything other than the purchase in 2009?
Pacita C Dimacali July 8, 2013 at 9:50am

Jeff --- my gut feeling says they can buy the house back if they are now financially able to. I can't see anything on the arms length affidavit about a time restriction to buy it back. That's assuming of course that they are not outbid by other buyers in this market.

If there are other opinions, I surely would like to hear them.
Jeff Payne July 8, 2013 at 9:43am

I can not imagine there is a law that says they can not purchase it back. Is there a deed restriction that says the buyer can not purchase home in the future?