Real Estate Short Sales
As interest rates on adjustable rate mortgages go up and real estate values go down, millions of American homeowners have been left with "upside down mortgages," owing more than their home is worth.
If your family is in a financial bind, stretched to make a large mortgage payment and yet unable to sell a house you can no longer afford because you owe more than it is worth, the situation can seem bleak. But you do have options .
We can advise you on the potential benefits, risks, and consequences of options like:
- Foreclosure (trustee's sale)
- Arranging for the short sale of a home
- Refinancing or relocking an ARM
- Filing bankruptcy
What is a Short Sale?
With a "short sale" on a home, the buyer pays the current assessed value of the home even though the selling homeowner owes much more than that value to their mortgage lender. The difference in the amount owed and the amount of purchase is the amount the seller will be "short" on the sale.
Due to the mortgage crisis and spiraling property values, banks are sometimes increasingly open to accepting the short sale of residential property. But homeowners still worry if they will be responsible for the deficiency (the difference between what is owed and what has been paid to the mortgage lender).
Arizona has an anti-deficiency law that prevents lenders from pursuing the homeowner for this additional money, but not all mortgages qualify. We can review your loans and advise you regarding a short sale or foreclosure (trustee's sale). There may also be tax consequences as a result of a short sale, so you should seek the advice of a qualified tax professional.
Ask your Wilson-Goodman Law Group, PLLC attorney about home foreclosure, trustee's sale, short sales, and if you have any other questions relating to the sale or refinancing of a home, such as:
- Does my lender have to accept a short sale?
- What can my lender do?
- Will I be responsible for a deficiency?
- What are my rights once I default on a home loan?
- How long will a home foreclosure (trustee's sale) take?
Contact a Gilbert or Queen Creek real estate attorney at Wilson-Goodman Law Group, PLLC for assistance with difficult real estate issues: