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Updated over 13 years ago, 09/07/2011
Can the bank short sell to me??
I am a builder and I have one house left in inventory. I have been paying the construction note for 3 years. My uncle is now renting the house but due to a tax lien, the plan of him buying in a short sale has fallen through. The bank is willing to do in the words of the banker, "whatever it takes to not get the house back". I can get a mortgage no problem for what is owed and just rent it to my uncle who is a very solid tenant. The problem is, I owe 227k and its only worth about 195k. From my understanding, the bank cant short sell it to me because in the words of my lawyer, its not an "arms length transaction". I would gladly take 195k mortgage and rent it to him until its paid off but I have no interest in the house at what I owe. Any suggestions?