Freddie Mac Short sale Addendum

[Eshamoun]

About 10 years ago we sold our house in short in CA and we had to sign the Freddie Mac Short sale addendum. Now after almost 10 years we have an opportunity to buy back that house. Can we do it legally even though we signed the Addendum?

 

[quincy]

What does your short sale addendum say?

 

[Eshamoun]

This is the link to the addendum that my wife signed about 9 years ago http://www.care-services.us/forms/fhlmcfnma/FHLMC SS Addendum.pdf.

 

[quincy]

Will you be purchasing the home at its fair market value from a seller who has no relationship to you at all (e.g., unrelated, unknown)?

 

[LdiJ]

This is the link to the addendum that my wife signed about 9 years ago http://www.care-services.us/forms/fhlmcfnma/FHLMC SS Addendum.pdf.

Skimming through it, it doesn't not appear that there is anything prohibiting you from buying the house again. However, you really need to have it reviewed by a local real estate attorney. Logically, if you sold the house in an arm's length transaction and you are buying it in a arm's it should not be a problem.

 

[STEPHAN]

How are you going to pay for the house?

 

[Eshamoun]

Lease to own and the seller will carry the loan himself.

 

[Eshamoun]

The seller is the person who bought the house 9 years ago..

 

[STEPHAN]

What is your relationship to the seller?

 

[quincy]

The seller is the person who bought the house 9 years ago..

Assuming the short sale involved a buyer (now the seller) unknown and unrelated to you, and given the passage of nine years, it is probably unlikely that the original lender will be suspicious of your purchase, suspect fraud and seek damages.

But that would be the risk.

 

[Eshamoun]

Nothing, I used to do telemarketing for the realty that he used to buy this house and number of other houses in this town. I got to know him after a while after visiting our office for other business related activities.

 

[quincy]

Nothing, I used to do telemarketing for the realty that he used to buy this house and number of other houses in this town. I got to know him after a while after visiting our office for other business related activities.

You can discuss the addendum and your plans to re-purchase the house with an attorney in your area but, based on what you have said so far, you should be able to buy back the house.

The main reason for having the Addendums signed by the owners and real estate agents is to prevent fraud.

 

[STEPHAN]

If there is no fraud I really see no risk.

 

[quincy]

If there is no fraud I really see no risk.

The only risk I see is if the lender sees fraud, even where none exists.

It seems unlikely at best.

 

[STEPHAN]

Yes and if he uses no Freddie Mac financing, it is very unlikely they will ever find out. Usually they can't find anything in their files anyway ;-)