January of 2010 the Arizona Department of Real Estate created a Short Sale Seller Advisory. This is a very helpful document that Real Estate agents can share with their Sellers who are considering a Short Sale on their home. Much thought and consideration went into the preparation and below is a hyperlink to the document and the bullet points of what it covers. Other states that don't already have a Short Sale Advisory for their Real Estate agents could look to Arizona for helpful guidelines in developing their own.
Many of the headings in addition to an explanation have their own hyperinks for more clarification, direction and understanding.
Before Proceeding with a Short Sale
Understand a Lenders Options upon Loan Default
Be Aware of Pedatory "Rescue" Scams and Short Sale Fraud
Contact a Free HUD-Approved Housing Counselor or Contact Your Lender Directly
Utilize Free Services Available to Arizona Residents
Obtain Legal Advice
Obtain Tax Advice
Be Aware of the Consequences of Committing "Waste"
Options other than Short Sale
Consider All Options
Deed-in-Lieu of Foreclosure
Work Out Sale
Short Sale Considerations
Contact a Qualified Real Esate Professional
Investigate Documentation and Eligibility
Determine the Amount Owed on the Property
Determine the Estimated Fair Market Value of the Property
Consult Legal Counsel
Understand that a Short Sale May not Discharge the Debt
Obtain Tax Advice
Be Aware of the Impact on Your Credit Score
Understand That There May Be a Waiting Period Before You Can Buy another Home
Review the Arizona Association of REALTORS (AAR) Short Sale Forms
For More Information, Visit:
More and more home owners may need to consider a Short Sale. Hopefully, an Advisory such as this can help owners across the nation make an informed decision about how to proceed.