Can my sister buy my house through short sale?

To avoid some of the rampant fraud that was going on in short sale home sales, the government cracked down with something called an arm's length transaction. 

Too many home owners were trying to get out from their underwater mortgages by selling to a family member - so they weren't really selling.   They were keeping their homes by "selling" to their sister, father, or cousin, but getting rid of the mortgage that made their house unaffordable.

Now there's a document required in every short sale transaction that everyone has to sign - including the realtors.  Neither you nor your family can benefit from a discounted sale at the bank's cost.

Do you have questions about a short sale?  Let me know in the comments here or via email at Vicki[@]Call Vicki.com.

Vicki Moore
San Mateo Real Estate Blog
call/text  650-888-9268      
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photo taken at Clipper Street, San Mateo