I have a friend that is going thru a hardship and cant pay his mortgage anymore($1516mth + $150hoa)40days behind…He owns a nice condo 2bd 2ba 920sqf gated in front of community pool, in downtown phx…He bought it last year for $175,900+7500ppp…It is worth $169,000 now due to construction because of the new lightrail…He talked to the bank and they sent him a short sale package…With the hardship he has had I think we can get the bank to approve $120-125K…Now that being said is it legal for me to sell the condo to a buyer for $150K for a profit of $25K-30K…The complex has only 6 more 2brm units to sell out of 136…last sales price for the same unit was $167K + closing cost 2wks ago…
Whatever you negotiate with the bank is perfectly legal. Of course, depending on how you structure the deal, the bank may or many not say yes.