Now, when the debts are mounting for you, one of the only options open to you is that of short-sale of your house. The transaction’s proceeds result in a lesser amount of money which is not suffice enough for paying off your debts, but which can be accepted as a settlement by the bank to whom the loan is owed. So, if you are actually planning to sell your house on short-sale basis to a family member, you can be warned. This is because banks normally do not allow family members to be involved in short sales of houses and property.
The Arm’s Length Rule Of Banks
The banks usually do not profit if there is some short-sale of the product. So, they would not even like it if the short-sale of real estate is done at a cheap price. So, given that you would sell your house at a cheap rate to a family member, the bank would not allow you that. So, the bank maintains an Arms Length Rule regarding short sale of property. The agreement is the parties will not be related to each other. It will be a simple relationship of an investor interested in real estate being sold on short sale basis.
Exceptions To The Rule
If you are still planning to sell your house on short sale term, you can ask the bank or the agent about whether there are any exceptions to the Arm’s length transaction regarding real estate. One thing is that the bank is mainly concerned about the price at which the house will be sold. So, you can actually coax the bank that you are selling the house or real estate at a very competitive price which will fetch better proceeds as well. So, this can be counted as an exception to the rule regarding short sale. So if you are thinking, i need to sell my house fast, there’s several steps you need to always have in mind.
Alternatives On Residence
If you think that you are basically in a lose-lose situation with a real estate being on lien for a loan or debt, you can think of one solid alternative. This would be to short sell your house at any given price to an investor or some family member. Then, the same investor or family member can buy another place somewhere else and rent it out to you. This will allow you to have a stable shelter over your head for some time. In the mean time, you can then think of your next move to make as well.
Abiding By The Rules
However, strictly speaking, the rules of the Arm’s length transaction actually imply legal connotations. If you disobey them fully or even partially, it can be counted as an incidence of fraud. Therefore, you should, in most cases, abide by the rules and get in touch with an agent or someone to sell your house in the best way possible. Try to find an investor who is willing to give you a great price for your real estate holdings and help you recover from your debts successfully as well in the future. So this is something we can take as someone who can think, I want to sell my house today.