Legal Question in Real Estate Law in California
My brother who is a broker, wants to short sale his wife's house to me. Will there be any legal issues if I buy this house and use it as a rental property?
Asked on 10/23/11, 3:56 pm
2 Answers from Attorneys
George Shers
Law Offices of Georges H. Shers
Yes, the lender will,once it finds out about the family relationship, will accuse you and the other two of fraud, as this is not an arm's length sale.
Answered on 10/23/11, 5:24 pm
Mr. Shers is right only if the relationships are not disclosed to the lender. Of course if the relationships are disclosed there is very little chance of the lender approving the short sale. If you can get the lender to sign off on the short sale with full disclosures, however, there is no legal reason you can't buy the house and rent it out.
Answered on 10/24/11, 1:35 pm
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