Legal Question in Real Estate Law in California

I am a loan officer and have clients who want to re-purchase their short sold home, which they currently rent and never moved out. Their credit is not that bad and I'm looking for a reason to deny this loan.


Asked on 3/13/12, 11:52 am

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

Repurchasing the home likely violates the agreements they made with the bank to avail themselves of the short-sale. They agreed that there was no agreement between them and the buyer in which they will either remain in possession or purchase the property in the future. Banks do watch homes post-short-sale for repurchase by the sellers/borrowers, so if I were you, I would simply refer them to someone else - you don't need to be a part of such a transaction, especially in light of all of the new regulations imposed upon.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. Further, information you provide to the Firm through this website is not confidential - it is available publicly to anyone visiting this website. The Firm shall have no obligation to keep the information you provide herein confidential in any context. The information provided herein by the Firm is general, and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence. As required by 11 U.S.C. �528, we must now disclose that, "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Assistance we provide with respect to Debt Relief may involve bankruptcy relief under the Bankruptcy Code."

Read more
Answered on 3/15/12, 1:11 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California