What is a short sale affidavit?
Description Arm’s Length Affidavit Form In real estate, a short sale occurs when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor (i.e., the seller). A short sale typically is executed to prevent a home foreclosure.
What is an arm’s length transaction affidavit?
The purchase and sale transaction is an “Arm’s Length Transaction,” meaning that the transaction has been negotiated by unrelated parties with no prior relationship outside of this transaction, business or personal.
What is non arm’s length short sale?
A non-arm’s length transaction occurs when the buyer and seller have a personal relationship. A deal between friends, family or co-workers is considered to be a non-arm’s length transaction. With these home sales, self-interest may not be the motivation, for instance, when parents sell their home to an adult child.
What is an arm’s length settlement?
An arm’s length transaction refers to a business deal in which buyers and sellers act independently without one party influencing the other.
What is an arms length home sale?
In real estate, an arm’s length transaction refers to situations in which there is a transfer of property and the buyer and seller act independently of one another. This kind of transaction ensures that both parties act in their self-interest to get the best deal, and that neither party exerts pressure over the other.
What is arm’s length resale?
What is an “arm’s-length” sale? “It is a transaction in which the buyers and sellers of a product act independently and have no relationship to each other. Instead of the seller acting in his best interest with the highest price, the parent offers the child a discount, which means it is a non-arm’s-length transaction.
Can you short sell your home to a family member?
Short Sale Laws There’s no actual law against short selling your home to a relative, but even so you could end up breaking the law. If you’ve short sold your home and your lender suspects collusion between you and the buyer it could sue you for damages or claim criminal fraud.