If she quitclaims her 50% of the house to me, could she then purchase it from me as a short sale right away, or would there be some waiting time?

6/04, Home was purchased in as fixer upper by myself and a partner 50/50 on title. 11/04, I quit claim my 50% to my wife (for tax reasons). 12/05, renovations were completed. Wife and I refinance to pay off a friend who deeds his 50% interest to wife making her 100% owner but in both our names. 01/07, I refinance in my name only. Wife quit claims her ownership to her and me as joint tenants. Present time: I have been negotiating with my bank for three years (yes three years since November 09) for modification. It was unsuccessfully of course. Home is in "pre-foreclosure" but no sale date. (was set back in 11/04 but cancelled due to workout effort). I have been told that I am not eligible for mod and contacted by short sale people. Wife approved for a mtg to buy another home, just in case (again, she is on the title to this home, but not the mtg). I want to negotiate with my lender to forego the arm length transaction restriction and allow my wife to buy our present house as a short sale, which they normally won’t do but which I think I can get them to do if I sue them and challenge their standing to foreclose. I am sure they cannot produce the note (original foreclosure sale papers had affidavit to that effect). The bank that is giving wife mtg says she can't buy it if she is already on the title. It would have to be a refinanced. She is not on the mtg. The mtg payments would have to be current for 12 months prior to refinance. A friend of mine who is an RE developer suggested bypassing the servicer, contacting the investor (or trustee) and offering to have wife buy the note rather than the house, which he says is not unusual.