Yes, you may sell to a family member of the prior owner.
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So long as there arrangement was not in place at the time you purchased the property, there is no restriction on such transfer. Even if such arrangement had been agreed upon when you brought the property, ii is unlikely to ever be picked up or challenged.
If you'd like to discuss, please feel free to call.
Gold, Benes, LLP
1854 Bellmore Ave
Bellmore, NY 11710
Email - Jgold@goldbenes.com
Aboslutely, as long as it was not premeditated, you shoudl be fine.
Legal disclaimer: The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Massachusetts. Responses are based solely on Massachusetts law unless stated otherwise.
All the short sale agreements that I've seen prohibit the resale of the property to the seller, or a party related to the seller, for a period of time. I've never seen one that restricts such resales for a period of 3 years, but I suppose it's possible. You (or, preferably, an attorney) need to read closely the terms and conditions placed by the bank on the prior short sale to make sure this is okay. Though I doubt a bank would go after anybody, it's a risk you'd rather not take. Plus, you may not be able to get title insurance on the current transfer (or have a claim denied) if it's not resolved.