I need help, I am trying my hand in a short sale deal and came across a term that threw me off. Just to give some background of the situation, I came across a distress property doing driving for dollars. I found the home owners and was able to have them sign a 3rd party authorization form so I could speak with the lenders regarding the property. At this point there has been an appraiser at the property sent by the lender and I've been able to get contractor bids.. I mentioned to the Account Manager that I myself may be interested in making a purchase of the home. He responded advising that this needs to be an Arms Length Transaction and since I am a third party negotiating on the behalf of the seller that this would be an issue.
I am attempting to assist the non owner occupied home owners to resolve this issue but I don't want to let this deal slip either. Worst case scenario I will go ahead and have the broker that I am working with list the property so they may sell the home. Any help would be appreciated guys. Thanks.
A buyer should not be processing the short sale transaction, it's a weird look even though it may be arms length. The servicer may perceive the transaction as non arms length and black list the buyer from purchasing. All short sales generally need to be listed with a broker and on the MLS for a certain marketing period depending on investor guidelines.
Sounds like this should be restructured for the best chances of success.
Reach out with any questions.
@Brett Goldsmith Just sent you a PM. Thank you.
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