An arms-length or short sale affidavit is a document created by a bank in an attempt to prevent sellers from selling to relatives or friends to act as a straw buyer. Sometimes sellers make such side agreements. Then, after the transaction closes, the pretend buyers quickly transfer title back to the seller. This practice, in affect, means the sellers have repurchased their home at maybe half the cost, which greatly benefits those sellers.
The Virginia Short Sale Affidavit of Buyer is a legal document used during the short sale process in the state of Virginia. This affidavit acts as a sworn statement by the buyer, confirming their understanding and agreement with the terms and conditions of the short sale transaction. The purpose of the Virginia Short Sale Affidavit of Buyer is to protect both the buyer and the seller by ensuring full disclosure and transparency. It helps to establish that the buyer is aware of the distressed status of the property and the potential risks associated with purchasing a property through a short sale. The content of the Virginia Short Sale Affidavit of Buyer typically includes the following key elements: 1. Identification: The affidavit will require the buyer's full legal name, address, and contact information. 2. Property Details: A description of the property being purchased, including the address, legal description, and any other relevant details. 3. Short Sale Status: The buyer acknowledges that the property is being sold as a short sale, indicating that the sale price may be below the outstanding mortgage balance. 4. Seller's Financial Hardship: The buyer confirms their awareness that the seller is facing financial hardship and that the property is being sold in an attempt to avoid foreclosure. 5. As-Is Purchase: The buyer acknowledges that they are purchasing the property in its current condition without any warranties or guarantees from the seller. They understand that they are responsible for any repairs or maintenance needed after the closing. 6. Non-Refundable Deposit: The buyer agrees to provide a non-refundable deposit as a sign of their commitment to the transaction. This deposit will be forfeited if the buyer fails to proceed with the purchase. 7. Closing Timeline: The affidavit may outline the expected timeline for the closing process, including any deadlines for inspections, financing, and other contingencies. 8. Consultation with Professionals: The buyer acknowledges that they have consulted with professionals such as real estate agents, attorneys, or tax advisors to understand the legal and financial implications of the short sale. Different types of Virginia Short Sale Affidavit of Buyer may include variations based on specific lender requirements or other circumstances. For example, some affidavits may include additional clauses related to the buyer's eligibility for a mortgage or their ability to obtain financing. In conclusion, the Virginia Short Sale Affidavit of Buyer is a critical document in a short sale transaction, confirming the buyer's understanding and agreement with the terms of the sale. It helps protect both parties by ensuring transparency and disclosure throughout the process.
