Can a family member buy my home if my lender approves a short sale?

Most banks will have you sign a “Arms Length Transaction” document that is part of the short sale documents.

This is the wording of a typical document:

AFFIDAVIT OF “ARMS LENGTH TRANSACTION”

All parties to the contract on the premises dated ____________________________

Property Address:

Hereby affirm that this is an “Arms Length Transaction”

No party to this contract is a family member, business associate, or shares a business interest with the mortgagee. Further, there are no hidden terms or special understandings between the seller or buyer or their agents or mortgagee.

The buyers and sellers nor their agents have any agreements written or implied that will allow the seller to remain in the property as renters or regain ownership of said property at anytime after the execution of this short sale transaction. None of the parties shall receive any proceeds from this transaction except the sales commission.

_________________________________ _____________________________

(Seller) Date (Seller) Date

_________________________________ ______________________________

Print Name Print Name

_________________________________ ______________________________

(Seller’s Agent) Date (Buyer’s Agent) Date

_________________________________ ______________________________

Print Name and Company Print Name and Company

_________________________________ ______________________________

(Buyer) Date (Buyer) Date

__________________________________ ______________________________

Print Name and Title Co. Name Print Name and Title Co. Name