Can Seller Rent Home Back After Short Sale?

An investment group is purchasing a short sales home in Surprise, AZ. The group’s intention is to rent the home after the short sale closes.  The seller of the property would like to rent the home back from the investment group.  The group’s understanding is that a sale of the home back to the seller after a short sale is illegal, but is it possible to rent a short sale home back to the seller?

While there is no law or court decision that prohibits a buyer from selling or renting the home back to the seller after a short sale, many lenders that approve short sales will require the seller and the buyer at closing to sign “arms-length” affidavits or similar documents that generally would prohibit a buyer from selling or renting the home back to the seller after the closing of a short sale.

Advertisements

Tags: , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: