Las Vegas, Nevada — One of the most common questions we’re asked is, “Can I stay in my home after the short sale is complete?” Many Realtors and even some Attorneys claim they can sell your home to an investor (i.e. Cash Buyer, Hedge Fund Buyer, etc.) who will allow you to remain in your home as tenants after the short sale is finalized. Who wouldn’t want to take advantage of an opportunity like this? Staying in your home would avoid the inconvenience of moving, costly moving expenses, etc. This seems like an attractive solution, however, is it really an option? Is there a catch?
In a short sale, most banks will require the Seller to sign a notarized affidavit stating that the homeowner is “not allowed to rent back the home from the new owner(s).” The short sale approval letter is issued after the homeowner agrees to these terms in writing. Violating these terms may be construed as “fraud” by the Sellers lender and could result in litigation or even the reversal of the short sale.
While there may be some exceptions to this rule, most major banks, (i.e. Bank of America, Chase/JP Morgan, Wells Fargo, Citi, Seterus, GMAC/Ocwen, Greentree, PNC, etc.) require this affidavit signed by the homeowner before granting short sale approval. There are some Buyers, Realtors and even Attorneys who may offer you the opportunity to rent back the home from the new owner(s) however, please be advised that this decision could result in serious consequences. Unfortunately, if something sounds too good to be true, it may be an advertising gimmick designed to get your money and take advantage of your bad situation. If you have any doubts, you should talk directly to your Bank and ask them if they will allow you to remain in your home as a tenant after your home is sold and the short sale is complete. If it is allowed, be sure to get something in writing, for your own protection.
Here is the actual verbiage contained in the short sale affidavit’s and/or short sale approval letters from several major banks:
BANK OF AMERICA
“The Parties acknowledge and agree that neither the Buyers nor the Sellers nor their respective Brokers/Agents have any agreements written or oral that will permit the Seller or the Seller’s family member to remain in the property as renters or regain ownership of said property at any time after the execution of the Short Sale transaction. This includes if the seller is retaining a direct or indirect ownership or possessory interest in the property and/or has a formal or informal option to obtain such as interest in the future.”
“Neither the Buyers, or 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.”
“There is no agreement, whether oral, written, or implied, between the Seller and the Buyer and/or their respective agents that allows the Seller to remain in the property as a tenant or to regain ownership of the Property at any time after the consummation of this sale transaction.”
“There are no agreements, understandings or contracts between the Seller(s) and the Buyer(s) that the Seller(s) will remain in the Property as tenants or later obtain title or ownership of the Property, except that the Seller(s) are permitted to remain as tenants in the Property for a short term, as is common and customary in the market but no longer than ninety (90) days, in order to facilitate relocation.”
SETERUS, OCWEN & GMAC (*all contain identical verbiage)
“There are no agreements, understandings or contracts between the Seller(s) and Buyer(s) that the Seller(s) will remain in the Property as tenants or later obtain title or ownership of the Property, except that the Sellers(s) are permitted to remain as tenants in the Property for a short term, as is common and customary in the market but no longer than ninety (90) days, in order to facilitate relocation.”
The Myers Team with The Caliber Realty Group is nationally recognized as one of the most influential figures in Real Estate today. According to Myers Team owner, Bill Myers, “Surrendering a home worth half of what you owe is NOT a failure, it’s a business decision. A short sale is an opportunity for you and your family to take control and walk away free and clear. Nobody wants to lose their home; however, loan modification doesn’t work and there is no need to go down with a sinking ship. Homeowners need to know when to say enough is enough.”
Bill and Francoise Myers have helped hundreds of Las Vegas families avoid foreclosure. Myers said, “Sellers facing foreclosure must remember that banks are not looking out for you or your family. When you work with The Myers Team, our job is to get between you and the bank. We represent our clients, NOT the banks. It is our job to negotiate the best possible outcome. Ultimately, our job is to take away the stress, and make the transaction as smooth and stress-free as possible.”
Visit The Myers Team web site at http://www.NevadaShortSaleInfo.com
Also visit http://www.VegasShortSaleInfo.com
*Above production is based on results from January 1, 2007 through December 31, 2012 (short sale listing ends only from non-lawyer affiliated Realtors and Brokers.) The information provided is obtained from public records, it is deemed reliable but not guaranteed.