Legal Question in Real Estate Law in Massachusetts

Re: Real estate - short sale-purchase by family member

You can try to purchase it at short sale but bank may be very very skeptical because this is not an arms length transaction. There is a decent chance that they will reject the short sale on that basis. The bank may believe that you are buying it at a lower price to give it back to your daughter. Whether banks accepts probably depends on if your offer is fair compared to the bank appraisal . It is also very difficult to do a short sale unless your daughter is in default. Also, look at the new federal law which allows owners of real estate to lower their debt so long as they do not not make a profit when they sell. Perhaps your daughter could negotiate with bank to lower the debt with some sort of guarantee by you. You should explore all of your options. You can also consider purchasing the house at foreclosure. You should contact a real estate attorney.

Real Estate

You need to contact the bank, or wait until the unit is placed on sale.

Re: Realeaste

You can make an offer to buy the unit if that is what you want to do. However, I assume you are not a co-signor on the Mortgage for your daughter or hold title to the property.

Also, you need to make sure that there are no other liens on the property beyond the Mortgage, so that you do not get a property with other liens on the property.

The bank may have an issue selling to your daughter's parents, but legally there is no issue as long as you have no obligation to the bank under the existing loans.

If you need assistance, please feel free to contact me.

Re: Realeaste

If the house title is in your daughter's name alone, and you are not a signer on the mortgage, you can sign a purchase agreement with your daughter. If you have your financing approved it will make this transaction smoother. Your daughter may find it easier to get the bank's cooperation if she has a signed purchase agreement in hand at a reasonablem price (Note: A short sales price may be reasonable. It's worth a try.)