Chicago Short Sales: Is It Legal For A Seller to Buy The House He Is Short Selling?

Posted on January 12th, 2011 in All Articles, Short Selling/Buying.

Chicago IL – The Stop Foreclosure Institute recently received a question from Mau. Here is Mau’s Question.

“Is it legal for a short sale seller to buy the house he is selling on short to reduce his mortgage loan?” asked Mau.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Here was our answer. We don’t know of any law on the books that forbids a person from buying a home they are short selling. Here is what we do know.

Most banks and lenders don’t allow it. If the short sale negotiator sees a sales contract with you as the buyer, then they won’t approve the short sale.

Sure, you could do fishy paperwork to buy the home yourself. But, you risk getting in trouble for fraud if you were caught.

I think the biggest reason people aren’t trying this is because they can’t get a loan after a short sale. You aren’t able to buy another house for 2 years after a short sale.

There is an FHA loan program that allows you to buy after a short sale. But, one of the stipulations is that you must be buying a smaller or inferior home.

If you are looking to reduce your mortgage loan, do it the legal way. Get a loan modification with your current lender. Or, short sale your current home, rent for 2 years, and then buy a new home.

That allows you to wipe out the upside down debt and move on with your life. And best of all, you aren’t at risk of going to jail for fraud.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at phil@teambrealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Remember to visit my Chicago short sale blog www.ShortSaleSuperMan.com for great tips and news on short selling in Chicagoland.

Thinking about a loan modification? Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at http://shortsaleagentadvocate.com/. Chicago Short Sales Realtor:

Phone: (312) 953-6725. phil@teambrealty.com.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.

We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Phil Buoscio’s personal views and do not reflect the views of http://shortsaleagentadvocate.com/.

This information on Chicago Short Sales: Is It Legal For A Seller to Buy The House He Is Short Selling? is provided as a courtesy to our viewers to help them make informed decisions.