buying property back after short sale ?

2 Replies

not a legal question, apologies for the detailed background.

hi community -> we are 2 partners of a LLC, that is in the process of surrendering a commercial property back to the lender via a deed-in-lieu. We are forking over big money plus giving up the property to settle this with the lender.

I am partner 1 (passive) in CA, and managing member/partner 2 and said property is in NJ. Is there anything that prevents the NJ partner from buying the same property back from the lender at a future date for a reduced price?

I suspect fraud, and feel that the entire deed-in-lieu process, has been set up to allow partner 2 to buy the property at a discount.

thanks in advance

As Brett suggested, read the paperwork. The lender can do what they want but I would be highly suspect if you as a borrower were not privy to and subject to whatever agreement the bank came up with.  That said, if you both agree to the short sale and the other partner approaches the lender back after execution of the short sale and offers to buy it and they agree to sell it, I don't see anything wrong with that.

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