Have a family buy all cash then purchase property from them with loan?

[Robert Klisak]

Hi BPers!  

Here is my situation that I'm currently looking into.  There is a short sale duplex that was pending for a long time.  It's been on the market for almost two years in total but just recently came back on the market.  It's priced well under market, and I tried to jump on it as soon it came back on, but it's been nearly impossible to get in touch with the agent.  My realtor tried for an hour to get in touch with them and when he finally did, he was told that there has been an offer that they are about to accept they were just trying to work out the terms.  I believe the bank only approved the short sale price until the end of February.

However, they said that they would still consider an all cash offer and accept that if it were offered.  So, what I am thinking, if I can get a family to buy the property all cash while I get my loan application in order (I know that I'll qualify) and then use the loan to pay off my family member?

Does anyone have any experience doing something like this?  My realtor said its relatively easy, but I know he just wants to get his commission so I thought I'd reach out to you fine folks here on BP!

Thanks so much in advance!