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Short sale questions in Arizona- paying back the difference?

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asu174 Joined: 22 Apr 2009 Posts: 1 1.68 Dollars($)	Posted: Wed Apr 22, 2009 4:51 pm    Post subject: Short sale questions in Arizona- paying back the difference? Like 0 Dislike 0 I bought a home in Arizona that I am considering short selling. I know that in Arizona I am not responsible for any of the difference of a short sale as long as cash was never taken out (which it wasn't). I want to make sure that the types of mortgages fall under this umbrella. The first mortgage is a 30 year ARM. The 2nd mortgage is a HELOC, but I have never taken cash out against it. I know I will face tax penalties, but will I be responsible for repaying the difference of the short sale?
savior70 Joined: 25 Mar 2009 Posts: 1895 Location: Florida 261.84 Dollars($)	Posted: Thu Apr 23, 2009 4:16 am    Post subject: Like 0 Dislike 0 Hi As far as I'm aware of, Arizona does have a broad anti-deficiency laws that protect home owners from being sued by creditors. The lenders cannot come after you for the deficiency if : 1. The property is 2.5 acres or less. 2. It is used as single family or two family dewelling 3. The owner did not reduce the value of the home by waste. It does not matter much whether it is a first mortgage or the second. The laws remain the same and they are applicable both in case of a primary mortgage and a heloc.
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12346 Location: bloomfield, ct 53.01 Dollars($)	Posted: Thu Apr 23, 2009 7:34 am    Post subject: Like 0 Dislike 0 asu, you claimed in your first sentence to know that you're not liable, yet you're asking in the finale if you're liable. fortunately, it looks like savior has done some homework and provided you with some sound information. _________________ George M. Akerley Independent Contractor - Mortgage Consultant Word of Excellence Editing/Writing/Proofreading 860-221-5044
Jaime Woods Guest	Posted: Wed May 06, 2009 10:51 pm    Post subject: That ugly second HELOC loan Like 0 Dislike 0 I would still verify with the second mortgage company if the second is a "recourse" or "non-recourse" loan. as you can never be sure until you hear it straight from the horse's mouth!..and if they have prepayment penalties, mortgage insurance being carried on it (believe it or not, the lenders can create mortage insurance on one of your loans without your knowledge!), and also review the IRS website about the Mortgage Debt Forgiveness Act and sit down with a tax professional...there are some options!
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12346 Location: bloomfield, ct 53.01 Dollars($)	Posted: Thu May 07, 2009 7:43 am    Post subject: Like 0 Dislike 0 gee, i wish i knew all those secrets before _________________ George M. Akerley Independent Contractor - Mortgage Consultant Word of Excellence Editing/Writing/Proofreading 860-221-5044

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