Knoxville Short Sale Question: Can My Dad Buy My Home, So I Can Rent It?

thoughtful-pen-writing-24581037-2560-1702In our Ask the Expert Section, we recently received a question from Graham, he asks, “I've been through a difficult time. I lost my job and racked up a lot of debt during the time I was unemployed. I'm over a year behind on mortgage payments and am considering doing a short sale on my Knoxville home. My dad said he would be willing to buy it, so that I could rent it out. Do you think my lender would allow that to happen?" Unfortunately, Graham, out of my experience with Knoxville short sales, I think that it would be unlikely that your lender would allow this to happen. When a lender approves a short sale, they are already accepting a loss, so they like to ensure that the seller is not benefiting in anyway from the sale. In many cases, lenders will require both the buyer and seller to sign off on an Arms Length Affidavit, which acknowledges that both the buyer and seller had no relation to each other prior to the sale. While it may not be your intention to outsmart your lender, most lenders are overly cautious when it comes to ensuring this. And, if your lender were to find out, it ruin your chances at getting a short sale approved. Ultimately, it is your decision whether or not your try to pursue a short sale and have you dad buy it. It is important to remember that  generally you only get once chance to complete a short sale, so you want to give yourself the best chance possible. While it can be difficult to part with your house, a short sale can give you the opportunity to start over. There are many buyers out there looking to buy short sales, so you're likely to find a buyer easily. Are you a Knoxville homeowner facing foreclosure? Are you unsure of what you options are? Give my team and I a call today to hear your options at 865-696-9002 or via email at [email protected]. Whether you decide to do a loan modification, short sale, or deed-in-lieu of foreclosure all of my services our done at no cost to you.

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