When sellers are faced with a decision to sell their home where there is no equity
remaining, the following resources can help with the decision process.
Understand what a short sale or foreclosure may do to your credit history. Review the
Fannie Mae Decision 08-16 to see how many years either will stay on your credit report.
Understand the tax ramifications and Debt Judgments for a short sale or foreclosure.
Please see the following links to review articles on tax ramifications and Judgments in foreclosure
and short sale cases:
Mortgage Forgiveness Debt Relief Act of 2007
http://www.boatescrump.com/CM/Articles/Short-Sales-Foreclosures.asp
http://www.garystickell.com/articles/arizona-antideficiency.htm
http://www.justanswer.com/questions/19b5a-az-anti-deficiency-law-cover
http://www.plattwestby.com/CM/RealEstateLaw/RealEstate-Mortgage-Antideficiency-Laws.asp
http://www.keytlaw.com/azrealestate/foreclosurelaw.htm
Mark Taylor is a loan officer that specializes in understanding and helping to facilitate short
sales. He also teaches classes to real estate agents which focus on short sales. He provides
information on his website at: www.azshortsalesdoneright.com.
Short sales may be difficult to negotiate, and may therefore lead to foreclosure, if the
homeowner is not facing a financial hardship.
Some examples of financial hardships include:
1) A loan payment increase (resulting from an adjustable rate mortgage)
2) Loss of job
3) Business failure
4) Non-neglectful damage to property (flood, fire, etc.)
5) Divorce
6) Forced relocation
7) Military service relocation (Short sales affect credit, which may affect military officer's
rankings; therefore, it is important to understand these ramifications before
initiating any type of sale or purchase of real estate.)
8) Reduced income
9) Incarceration
10) Death of an income earner
11) Health issues/daunting new medical bills
After making the decision to try to short sale your home, here is a list of documents
that you will want to pull together (more documentation may be required later):
1) A letter detailing the financial hardship, which is signed by the borrowers (providing
supporting documentation as attachments)
2) All asset/bank statements for the last two months (or last two statements if distributed
on a quarterly/biannual basis) for all borrowers
3) Pay stubs for the last two months for all borrowers
4) Tax returns and all schedules for the last two years for all borrowers
DISCLAIMER: Do not rely on any information contained within this website without first
consulting with a Certified Public Accountant and/or an Attorney. Consultations with these
experts should always be made before entering into any agreements for sale.
remaining, the following resources can help with the decision process.
Understand what a short sale or foreclosure may do to your credit history. Review the
Fannie Mae Decision 08-16 to see how many years either will stay on your credit report.
Understand the tax ramifications and Debt Judgments for a short sale or foreclosure.
Please see the following links to review articles on tax ramifications and Judgments in foreclosure
and short sale cases:
Mortgage Forgiveness Debt Relief Act of 2007
http://www.boatescrump.com/CM/Articles/Short-Sales-Foreclosures.asp
http://www.garystickell.com/articles/arizona-antideficiency.htm
http://www.justanswer.com/questions/19b5a-az-anti-deficiency-law-cover
http://www.plattwestby.com/CM/RealEstateLaw/RealEstate-Mortgage-Antideficiency-Laws.asp
http://www.keytlaw.com/azrealestate/foreclosurelaw.htm
Mark Taylor is a loan officer that specializes in understanding and helping to facilitate short
sales. He also teaches classes to real estate agents which focus on short sales. He provides
information on his website at: www.azshortsalesdoneright.com.
Short sales may be difficult to negotiate, and may therefore lead to foreclosure, if the
homeowner is not facing a financial hardship.
Some examples of financial hardships include:
1) A loan payment increase (resulting from an adjustable rate mortgage)
2) Loss of job
3) Business failure
4) Non-neglectful damage to property (flood, fire, etc.)
5) Divorce
6) Forced relocation
7) Military service relocation (Short sales affect credit, which may affect military officer's
rankings; therefore, it is important to understand these ramifications before
initiating any type of sale or purchase of real estate.)
8) Reduced income
9) Incarceration
10) Death of an income earner
11) Health issues/daunting new medical bills
After making the decision to try to short sale your home, here is a list of documents
that you will want to pull together (more documentation may be required later):
1) A letter detailing the financial hardship, which is signed by the borrowers (providing
supporting documentation as attachments)
2) All asset/bank statements for the last two months (or last two statements if distributed
on a quarterly/biannual basis) for all borrowers
3) Pay stubs for the last two months for all borrowers
4) Tax returns and all schedules for the last two years for all borrowers
DISCLAIMER: Do not rely on any information contained within this website without first
consulting with a Certified Public Accountant and/or an Attorney. Consultations with these
experts should always be made before entering into any agreements for sale.
When facing a hardship which forces a homeowner to move away from their current
residence, the following may be alternatives to consider:
1) Rent the home to a tenant
2) Loan modification
3) Forebearance (catching up on your payments)
4) Partial payments (agreed to by the lender)
5) Short Sale
6) Foreclosure
residence, the following may be alternatives to consider:
1) Rent the home to a tenant
2) Loan modification
3) Forebearance (catching up on your payments)
4) Partial payments (agreed to by the lender)
5) Short Sale
6) Foreclosure
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| Excel Realty, L.L.C., an Arizona limited liability company |
| Short Sales/Foreclosures |