Short Sale to Mother

Expert, localized Los Angeles answers provided by Heather Roy

Short Sale to Mother
	My house is worth $100,000 less than I owe. If I short sell it, can my mother buy it and then rent it to me or finance it for me (on a note) at the lower cost. I realize I will take a credit hit for 2 years.

	Your lender is going to look for a sale on the open market, not one to a family member. You'd need the lender's approval of any sale contract. And in many cases, while the mortgage is lifted so that the sale can go through, the lender then seeks a judgment for the remaining debt -- you'd want to check that out before you started.
	Edith Originally published on June 26, 2009

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