If I’m on title to a home, can I purchase it as a short sale?

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If I’m on title to a home, can I purchase it as a short sale?

My boyfriend and myself are both on title to a home we have. I am the only one on the mortgage. We currently do not reside in this home and have listed the property as a short sale. Could my boyfriend purchase the house in his name only if he is currently on title? We would not want to refinance due to the home being severely upside down and no programs are available for non-owner occupied negative equity properties.

Asked on June 26, 2012 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

No, you cannot do this--if you're on the title, you're an owner, and an owner can't buy from himself. (The mortgage is the loan, not ownership.) Moreover, the bank would never agree to this, since having one owner "sell" short to the other owner would be viewed by them as an attempt to defraud the bank by buying the property for less than its worth and eliminating the mortgage without paying it in full. They would think that if your boyfriend (who is on the title, and stands to lose his interest if the home is foreclosed) has the resources to "buy" the home, he has the resources to help pay the mortgage.


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