parkyblonde25
New Member
My spouse and I are in default on our mortgages. His income has been reduced to less than half of what he was making before we bought the house. We wiped out our savings, borrowed from our 401K, and borrowed against our credit cards in order to keep making our mortgage payments as well as pay our living expenses as we thought that this was only short-term.
We have spoken to our lenders a number of times to work out a modification but are upside down in the current market by up to $400K. The lenders want to extend the loan to 40 years, add the unpaid P&I payments to the loan, re-amortize it, possibly lower the interest rate but are not willing to adjust the current value of the home. Finally, we decided to sell on a short sale and have submitted the paperwork to the lender.
Ideally, we would like to sell to an investor who is willing to lease the property back to us for several years in order to get our children through high school - one will be a senior next year, so we don't want to have to change districts.
Is it illegal to lease back our house when sold to an investor on a short sale? We have found an investor willing to buy but have been told that it is illegal for us to rent back the property. We understand "Sham" and "strawman" tranactions, but we are only wanting to lease for a few years. Then we plan to move (out of our current city) when our children are in college. Is it really illegal? Or would we need to sign affidavits to attest that the house will not be sold back to us?
Your legal advice is appreciated.
We have spoken to our lenders a number of times to work out a modification but are upside down in the current market by up to $400K. The lenders want to extend the loan to 40 years, add the unpaid P&I payments to the loan, re-amortize it, possibly lower the interest rate but are not willing to adjust the current value of the home. Finally, we decided to sell on a short sale and have submitted the paperwork to the lender.
Ideally, we would like to sell to an investor who is willing to lease the property back to us for several years in order to get our children through high school - one will be a senior next year, so we don't want to have to change districts.
Is it illegal to lease back our house when sold to an investor on a short sale? We have found an investor willing to buy but have been told that it is illegal for us to rent back the property. We understand "Sham" and "strawman" tranactions, but we are only wanting to lease for a few years. Then we plan to move (out of our current city) when our children are in college. Is it really illegal? Or would we need to sign affidavits to attest that the house will not be sold back to us?
Your legal advice is appreciated.
