| These tips are for your Short Sale education, in all | | | | the short sale is the right process for you, |
| legal transactions seek a Goodyear Arizona Short | | | | don’t give up if met with resistance or delay |
| Sale Realtor or your personal attorney. | | | | throughout the complete process of the short |
| Rule 1: Understand fully what leverage you have, | | | | sale. Even an experienced real estate agencies |
| if any. Arizona’s anti-deficiency laws may | | | | and attorneys will have difficulty if there is an |
| apply to your loan. These laws can be beneficial | | | | unreasonable lender or loss mitigation |
| to deny and lender demands for a seller/borrower | | | | representatives. |
| contribution at the sale closing. If the loan is | | | | Rule 5. In the short sale process their will be a lot |
| covered by Arizona’s anti-deficiency laws, the | | | | of paperwork, agreements and documents that |
| lender is unable by law to seek compensation if | | | | will be confusing at best. Make sure that you |
| the home goes into foreclosure. An experienced | | | | understand each document that you are signing or |
| borrower of short sale realtor will use this law to | | | | agreeing. The standard ARR short sale listing |
| enhance a short sale offer to the mortgage | | | | agreement along with the Short Sale Addendum |
| company. As all loans are different, this law may | | | | will require any seller to provide information that is |
| apply differently in your scenario, so know the | | | | requested by each lender in the short sale |
| laws and how it can affect your loans on each | | | | application. Also, the Short Sale Addendum will |
| Goodyear AZ property that is in short sale | | | | require the seller to put all effort into getting a |
| negotiations. | | | | Short Sale approved. |
| Rule 2. For rapid Short Sale success, always seek | | | | Rule 6. Lender’s Approval Terms. The |
| lender’s express release of liability as a | | | | majority of lenders will require a seller to sign the |
| condition to the short sale, even if your loan | | | | short sale approval or agreement. The conditions |
| would be under the Arizona’s Anti-Deficiency | | | | and agreements used by each lender will vary |
| laws. Attempt to receive this Release in writing | | | | widely and should be thoroughly studied. Lenders |
| from each lender. If you are unable to receive a | | | | will usually be silent on their deficiency issues. |
| liability release, fully understand what liability you | | | | Other lenders will boldly try to get the borrower |
| may have to cover as a borrower following a | | | | to agree to liabilities for a deficiency following a |
| short sale, before you sign the final contracts. | | | | short sale, even if the loan would be under the |
| Arizona law should prevent the borrower from | | | | Arizona Anti-Deficiency provisions. Some short |
| being liable from any recourse from the lender | | | | sale approvals will require a borrower to sign an |
| following a short sale. | | | | unsecured promissory note. Either way the |
| Rule 3. Understand the basic requirements and | | | | borrower must understand what each process will |
| short sale process for starting the short sale. | | | | require, and what liabilities will be expected in the |
| Almost all lenders will ask for a borrowers | | | | lender’s short sale agreements and related |
| complete financial information. Bank Statements, | | | | documents. |
| 2 year tax returns, current W-2’s, company | | | | Rule 7. Carefully observe current and future |
| Profit and Loss statements, and etc. Also, most | | | | legislation. On April 5, 2010, the federal |
| lenders will require a borrower to declare a | | | | Government’s Home Affordable Foreclosure |
| hardship as a condition before approval of short | | | | Alternatives program will come in to effect and |
| sale. What each lender requires to be eligible for | | | | will change short sale and deed in lieu programs. |
| consideration as a hardship will differ per lender, | | | | The new law will make lenders unable to seek a |
| but can usually be discovered online or with a call | | | | deficiency following a qualifying short sale or deed |
| to the lending agency. If you discover that their | | | | in lieu of foreclosure. |
| may be liability after a short sale, that borrower | | | | Rule 8. Tax Liabilities. Understand how a short |
| may rethink about the liability requirements and | | | | sale agreement will apply to your federal income |
| whether a short sale would be the most proper | | | | and tax requirements. The lender will issue a |
| thing to do. | | | | 1099C at the acceptance of a short sale |
| Rule 4. Locate a skilled, experienced Goodyear | | | | agreement. Unless the borrower will be have |
| Short Sale Negotiator. The short sale endeavor | | | | recognized exceptions to cancel the debt income, |
| can be a lengthy, time consuming process. | | | | a borrower WILL be held liable for the cancelled |
| Without an experienced real estate agent or | | | | debt. A prudent borrower will verify which |
| attorney, the process can be very overwhelming | | | | conditions will be applicable for your tax filings |
| and stressful. However, despite the difficulties, if | | | | before the short sale process is completed. |