Monday Market Myths: Family Foreclosure Transfer

You can purchase a family members home if it is going through a foreclosure?

FALSE, If a loved one is facing foreclosure, a family member would ideally try to purchase the home from the bank to save their credit record.  Unfortunately it is not that easy, as banks would rather short sale the home in an Arm’s Length Transaction-someone unrelated to the seller-to avoid mortgage fraud.  Maybe the sellers could make their payment, but chose not and would rather have a family member buy it for them at the current market value (half of the original purchase).  Although it is stressful and frustrating that the bank would not work out a “family” solution , they are trying to prevent another market decrease by not releasing foreclosures.  Questions on the details of “Arm’s Length” just send me an email KJurevich@gmail.com.

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