Competing Offer On Short Sale Problem. Home Owners Parents!
I placed an offer on a short-sale (non-investment property) and shortly afterward I was told I was outbid. I just found out that the people who outbid me are the parents of one of the homeowners. I thought during a short-sale, it could not be between related parties.
[ Edited by DoubleDunny on Date 06/18/2008 ]
I question the legality because lets say that the guy buys the house back from his parents in the future. The bank took a loss on the house and he would still be living there, or owning it. Essentially, it could erase his previous debt. That sounds like fraud to me.
I thought that in order to do a short sale, you could not be a related party?
Chris
[ Edited by DoubleDunny on Date 06/18/2008 ]
If the family is rallying to save the house from foreclosure ... offer whatever advice you can to help them .. Be the hero.