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 West Virginia Short Sale Affidavit of Buyer is a legal document that plays a crucial role in the process of a short sale transaction in West Virginia. It is essential for homebuyers who wish to purchase a property involved in a short sale to understand the purpose and requirements of this affidavit. The primary purpose of the West Virginia Short Sale Affidavit of Buyer is to provide assurance and disclosure to the mortgage lender and all other parties involved in the short sale. This affidavit allows the buyer to formally declare their intentions, financial standing, and consent to adhere to the terms and conditions of the short sale agreement. It acts as a binding document that protects both the buyer and the lender in the transaction. When filling out the West Virginia Short Sale Affidavit of Buyer, there may be different types or versions, often modified by the specific lender or bank involved. However, the core content remains relatively consistent. Some lenders may have their own specific affidavit forms, but they typically cover similar areas such as: 1. Buyer's Personal Information: This section requires the buyer's full name, current address, contact information, and social security number. 2. Property Details: Here, the buyer needs to provide details about the property they are purchasing through the short sale, including the address and legal description. 3. Financial Information: This section requires the buyer to disclose their current financial status, including income, assets, liabilities, and employment details. It may also assess the buyer's ability to finance the purchase. 4. Breach of Affidavit: This part emphasizes the seriousness of providing false information or breaching the terms of the affidavit, highlighting potential legal consequences. 5. Acknowledgment of Affidavit: The buyer must sign an acknowledgment that they understand the content of the affidavit, confirming their consent and agreement to comply with the terms stated. It is crucial for buyers to fill out the West Virginia Short Sale Affidavit of Buyer accurately and honestly. Any misrepresentation or false information can lead to severe legal complications, including the potential cancellation of the short sale transaction. Overall, the West Virginia Short Sale Affidavit of Buyer serves as a crucial document in the short sale process. Buyers must carefully review and complete this affidavit to provide accurate information and demonstrate their commitment to acquiring the property under the agreed-upon terms.
