short sale and sell to a relative

I am working on a short sale for a relatively new house…3 years old. Loan substantially behind. The current owner now would like me to sell the house to her daughter. I have explained about double closing with a regular lender and if the mortgage company finds out her daughter is buying her home, the whole deal may fall through. The daughter apparently knows an investor that will buy the property at closing and then sell to her a few days/weeks later. Am I doing anything wrong here? Anyone have any advice or suggestions? Thanks…

A two words, arm-length. If you transact a short sale any other way. The lender will not deal.

Talk to the investor how he plans to buy and then sell to the daughter. What techniques he’s planning ot use etc., lease option, subject to, or else?
Subject to must be done properly, since there is DOS clause.
Good Luck!

Where do you get these lease option, subject to contracts ?


Does the mother and daughter have the same last names? If not, the lender will never know they are related, and you won’t need the other investor - just double close with them and call it a day.