The Answer is No, not to your Sister, Father, Mom, or Relatives!
When you short sale your San Jose home, your lender will ask you to sign an Arms-Length Affidavid. An arms-length affidavit is a document to prevent sellers from selling to a relative and thus curb mortgage fraud.
The reason the bank does not want a seller to transfer title to a relative in a short sale is because they are taking a loss so they don’t want sellers to profit from the sale of their property period.
When you sign an arms-length affidavit on your short sale and then violate it, you could be held liable for mortgage fraud. Mortgage fraud falls under jurisdiction of the F.B.I.
Please contact Broker Alan Nguyen, San Jose Short Sale Specialist for more information on this topic at (408) 835-7743 or email alan@i2realty.com.
