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 asu174
Joined: 22 Apr 2009
Posts: 1
1.68 Dollars($)
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 Posted: Wed Apr 22, 2009 4:51 pm Post subject: Short sale questions in Arizona- paying back the difference? |
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I bought a home in Arizona that I am considering short selling. I know that in Arizona I am not responsible for any of the difference of a short sale as long as cash was never taken out (which it wasn't).
I want to make sure that the types of mortgages fall under this umbrella. The first mortgage is a 30 year ARM. The 2nd mortgage is a HELOC, but I have never taken cash out against it.
I know I will face tax penalties, but will I be responsible for repaying the difference of the short sale? |
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savior70
Joined: 25 Mar 2009
Posts: 1422
Location: Florida
168.75 Dollars($)
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| Posted: Thu Apr 23, 2009 4:16 am Post subject: |
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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. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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| Posted: Thu Apr 23, 2009 7:34 am Post subject: |
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asu, you claimed in your first sentence to know that you're not liable, yet you're asking in the finale if you're liable.
fortunately, it looks like savior has done some homework and provided you with some sound information.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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Jaime Woods
Guest
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| Posted: Wed May 06, 2009 10:51 pm Post subject: That ugly second HELOC loan |
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| I would still verify with the second mortgage company if the second is a "recourse" or "non-recourse" loan. as you can never be sure until you hear it straight from the horse's mouth!..and if they have prepayment penalties, mortgage insurance being carried on it (believe it or not, the lenders can create mortage insurance on one of your loans without your knowledge!), and also review the IRS website about the Mortgage Debt Forgiveness Act and sit down with a tax professional...there are some options! |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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| Posted: Thu May 07, 2009 7:43 am Post subject: |
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gee, i wish i knew all those secrets before
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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