Suggestions on buying parents short sale home?

Suggestions on buying parents short sale home?

Boston, MA · Member since 2014 · 11 posts · 2 votes
How can I go about purchasing my first short sale income property home from my parents? The problem is I don't think I have enough funds for a down payment. Should I look into private lenders? If yes how long are they usually set up for? 30 year fixed loans ?
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  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    12y

    You can't. The lender will require an arms length transaction and won't allow a related party to be the buyer for a short sale.

  • Rehabber · Niantic, CT · Member since 2012 · 443 posts · 150 votes
    12y

    Ditto what @Jon Holdman said. You cannot buy a family member's or friend's property in a short sale, which is a legality set up to guard against fraud.

    Now if you meant instead that your parents have a contract on a short sale property that you'd like to take over/buy from them, that could be a different animal ... though I still don't think you'd be allowed to do it.

    And loans from private lenders are typically much shorter terms, nowhere near 30 years. I believe 1-2 is the norm, though someone else can correct me if I'm wrong. (You might purchase a buy-and-hold using private money, but then you'd refi into a traditional loan.)

  • Boston, MA · Member since 2014 · 11 posts · 2 votes
    12y

    Thanks @Jon_Holdman & @Karin_Dimauro.

    Well I definitely know now. Appreciate the help

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