Any impropriety in this situation?

[William D.]

Here is the scenario:

Person A is a divorcee who is underwater on her primary residence. It is a national lender who services the loan and she wants to list the property with a broker. She wants to short sell the property to person B who is her boyfriend and spends time at the house? Thus, if the lender approves the short sale to person B he will take title in his name alone; however, Person A may move in with Person B after the sale?

Anyone see any issues with this situation from a legal or contractual point of view? I am not familiar with what the national lenders are putting into their short sale agreements. Thanks in advance for any insight.

FYI, I am aware I should seek legal advice from a lawyer and all laws vary from state to state. I am merely looking for people's general opinions on the situation.