Innovative Strategies

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Cassi Justiz
  • Rental Property Investor
  • Edmond, OK
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Double Closing a Short Sale

Cassi Justiz
  • Rental Property Investor
  • Edmond, OK
Posted Aug 22 2019, 21:39

Someone approached some of the investors I work with for a "favor." Long story short, Person A is attempting to buy his parent's house from them. (They have dementia and weren't making payments, now the house is in a short sale situation). The lender told Person A that family is not eligible to buy the home. Someone recommended to them that they have Investor B buy the house and then double close so it's Investor B selling to person A.

Is this a legit strategy? I have always heard of restrictions on reselling short sales within a certain time frame, but I'm having a hard time finding legitimate documentation on this.

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