Ask the Expert Section, we recently received the following question from Joan, she asks, "A few years ago, my husband suffered an injury that has made it difficult for him to find work. Since then, we've struggled to make our mortgage payment. I tried to work with our lender to modify my loan, but haven't gotten anywhere. We're considering doing a short sale on our Knoxville home as a last resort. My mother-in-law says she would buy our home if we do a short sale on our Knoxville home. Would our lender allow her to buy our home?" When it comes to Knoxville short sales, every lender is different, so I can't definitively answer what they will and won't allow. However, from experience, I would say that it would be highly unlikely that your lender would allow a family member to buy your home. When you complete a short sale, a majority of lenders require that both buyer and seller sign an Arms-Length Affidavit. The reason that lenders require this document to be signed it to protect their own interest and prevent mortgage fraud. The reason that a lender would be hesitant to allow you to sell your home to a family member is that they would be afraid that you would somehow benefit from the sale. While that may be the last thing on your mind, it is something that lenders will be concerned about. While it is ultimately your choice what you opt to do, it is important to know that a lender will likely shy away. Knoxville short sales are highly sought after in the Knoxville real estate market, so you will likely receive multiple offers. You're much better offer finding a buyer that you have no ties to and getting the sale approved, it will be much better for everyone. Are you curious about your options to avoid foreclosure on your Knoxville home? If so, please do not hesitate to contact me by phone at 865-696-9002 or via email at [email protected]. My team and I are dedicated to helping homeowners explore their options to avoid foreclosure. Also, be sure to check out our Knoxville Short Sale and Foreclosure Solutions Page.