Is an uncle and nephew considered a non-arms length transaction in a short sale?

**hudychrsta** · 05-21-2009, 03:44 PM

Hello all,

If an uncle wants to short sale his house to his nephew (different last name), is this considered to be a violation of arms length?

Also, who/what/where defines this statute? I'm specifically looking for the proper dept in California that defines this satute. Thanks!

**dpylyp** · 05-22-2009, 05:29 AM

I have maintained a very simple rule where the relationship is either by blood or by marriage it needs to be disclosed.

**REITrainingWhse** · 05-22-2009, 05:52 AM

Originally Posted by hudychrsta

If an uncle wants to short sale his house to his nephew (different last name), is this considered to be a violation of arms length?

My question is... would the lender really care?? I have never seen a questionairre that had to be filled out that asked if you are related to the defaulted homeowner. (Maybe I have been lucky with all my SS transactions, but I doubt it.)

I think during these times, if the lender can reclaim part of their losses, they really don't care where it comes from.

Maybe it is me, I would not disclose anything, and just get the deal done. But that is just me.

Later!