What is a Short Sale?
A short sale is a negotiated settlement between the property owner and the lender in which the lender agrees to take less than is owed on the mortgage. This enables the owner to be released from the mortgage and move to a more affordable home while preserving their credit from foreclosure.

A short sale is a real estate transaction in which the sales price is insufficient to pay the liens encumbering the property and sale costs, but the seller is unable or unwilling to pay the difference.

What is the Anti- deficiency statute?
Arizona is one of only six states in the US with this type of consumer protection. If your home is sold in a short sale, the seller is not required to pay the difference between the mortgage amount and the amount the home is sold. There are a few requirements: The home must be a residence, it cannot be vacant land, the property must be 2.5 acres or less and the mortgage needs to have been purchase money. Click here for more information, and here for additional information.

What is the effect of a Short Sale on your Credit?
Short sales affect the seller’s credit for 1-2 years.

What kind of an effect would a foreclosure have on my credit?
Foreclosure affects the owner’s credit for 7- 10 yearsObama Home Rescue Plan-In Obama’s Home Rescue Plan, Short Sales were given incentives, lenders are offered up to $1000 to process the short sales and Seller’s are offered up to $1500 for relocation expenses.
Click here for a PDF document with more information.

What is the First time home buyer’s tax credit?
For 2009, Congress has increased the federal tax credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. This applies to first time home buyers, which includes individuals who haven’t owned a home in 3 years.If the house costs less than $80,000, the credit will be 10% of the cost. Click here for a PDF document with more information.

What are the tax liabilities of a short sale?
As of 12/20/2007, Congress passed the “Mortgage Forgiveness Debt Relief Act” which eliminates certain taxes on any debt forgiven on a principal residence through a short sale. Check with your Accountant for additional information.

Who pays the closing costs and commissions of a short sale?
The Lender(s) pay for all of these costs. The seller pays nothing.

How do we get started on a short sale?
Give us a call! Each bank works differently, we will handle all of the paperwork and facilitating of your Short Sale for you!