SHORT SALE TIPS FOR GOODYEAR ARIZONA RESIDENTIAL PROPERTIES

Author: Rob Luce

Author: Rob Luce

These tips are for your Short Sale education, in all legal transactions seek a Goodyear Arizona Short Sale Realtor or your personal attorney. Rule 1: Understand fully what leverage you have, if any. Arizonas anti-deficiency laws may apply to your loan. These laws can be beneficial to deny and lender demands for a seller/borrower contribution at the sale closing. If the loan is covered by Arizonas anti-deficiency laws, the lender is unable by law to seek compensation if the home goes into foreclosure. An experienced borrower of short sale realtor will use this law to enhance a short sale offer to the mortgage company. As all loans are different, this law may apply differently in your scenario, so know the laws and how it can affect your loans on each Goodyear AZ property that is in short sale negotiations. Rule 2. For rapid Short Sale success, always seek lenders express release of liability as a condition to the short sale, even if your loan would be under the Arizonas Anti-Deficiency laws. Attempt to receive this Release in writing from each lender. If you are unable to receive a liability release, fully understand what liability you may have to cover as a borrower following a short sale, before you sign the final contracts. Arizona law should prevent the borrower from being liable from any recourse from the lender following a short sale. Rule 3. Understand the basic requirements and short sale process for starting the short sale. Almost all lenders will ask for a borrowers complete financial information. Bank Statements, 2 year tax returns, current W-2s, company Profit and Loss statements, and etc. Also, most lenders will require a borrower to declare a hardship as a condition before approval of short sale. What each lender requires to be eligible for consideration as a hardship will differ per lender, but can usually be discovered online or with a call to the lending agency. If you discover that their may be liability after a short sale, that borrower may rethink about the liability requirements and whether a short sale would be the most proper thing to do. Rule 4. Locate a skilled, experienced Goodyear Short Sale Negotiator. The short sale endeavor can be a lengthy, time consuming process. Without an experienced real estate agent or attorney, the process can be very overwhelming and stressful. However, despite the difficulties, if the short sale is the right process for you, dont give up if met with resistance or delay throughout the complete process of the short sale. Even an experienced real estate agencies and attorneys will have difficulty if there is an unreasonable lender or loss mitigation representatives. Rule 5. In the short sale process their will be a lot of paperwork, agreements and documents that will be confusing at best. Make sure that you understand each document that you are signing or agreeing. The standard ARR short sale listing agreement along with the Short Sale Addendum will require any seller to provide information that is requested by each lender in the short sale application. Also, the Short Sale Addendum will require the seller to put all effort into getting a Short Sale approved. Rule 6. Lenders Approval Terms. The majority of lenders will require a seller to sign the short sale approval or agreement. The conditions and agreements used by each lender will vary widely and should be thoroughly studied. Lenders will usually be silent on their deficiency issues. Other lenders will boldly try to get the borrower to agree to liabilities for a deficiency following a short sale, even if the loan would be under the Arizona Anti-Deficiency provisions. Some short sale approvals will require a borrower to sign an unsecured promissory note. Either way the borrower must understand what each process will require, and what liabilities will be expected in the lenders short sale agreements and related documents. Rule 7. Carefully observe current and future legislation. On April 5, 2010, the federal Governments Home Affordable Foreclosure Alternatives program will come in to effect and will change short sale and deed in lieu programs. The new law will make lenders unable to seek a deficiency following a qualifying short sale or deed in lieu of foreclosure. Rule 8. Tax Liabilities. Understand how a short sale agreement will apply to your federal income and tax requirements. The lender will issue a 1099C at the acceptance of a short sale agreement. Unless the borrower will be have recognized exceptions to cancel the debt income, a borrower WILL be held liable for the cancelled debt. A prudent borrower will verify which conditions will be applicable for your tax filings before the short sale process is completed.About the Author:

Robert Luce is the leading short sale realtor in the Goodyear Arizona Short Sale market. For more information goto http://www.westvalleypros.com

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