short sale: What's the point of the new "Arms Length" addendum in Short Sales?
- 03/10/11 07:40 AM
I have a client with whom I have been working for nearly a year to short sell her home. She has two loans in place, and is approximately $120,000 upside down on a house that is worth about $99,000 right now. The first lender took about six months to approve the short sale, but finally did. The second lender, Chase, has approved the sale, but is requiring an "Arms-Length" addendum to the Purchase Contract prior to authorizing the release of the lien and waiver of the right to pursue the deficiency. As a lawyer and Realtor, I spent some time with … (1 comments)
short sale: Short Sale, Foreclosure or Bankruptcy, Oh My!
- 03/10/11 07:36 AM
As a licensed attorney and Realtor in Arizona, I have had many opportunities to advise clients regarding the relative risks of short sales. I have been surprised to run into many agents who do not want to refer their clients to an attorney for legal advice, because the agents believe that attorneys will always advise clients to pursue a bankruptcy, rather than a short sale. They are shocked to learn that I am typically the opposite. There are a couple of reasons for why I believe so many attorneys advise clients to file bankruptcy. First, consider the source. In many cases, if … (3 comments)
short sale: It's Spring!! Time to SELL!!
- 03/10/11 07:28 AM
In Arizona, spring means two things to me ... (1) the sweet smell of orange blossoms in the air; and (2) IT'S TIME TO SELL YOUR HOUSE!! Spring has always been considered the hay day of the annual real estate cycle. Buyers come out more frequently in these months to purchase in time to move during the summer, and get the kids settled before school starts in the fall.Arizona is doubly active in the spring. All winter long, "snowbirds" (as they are affectionately referred to here) have spent the winter enjoying the warm weather, and great outdoor activities. Before leaving to … (1 comments)
short sale: Repayment of First Time Homebuyer Tax Credit
- 02/25/11 04:38 PM
I wrote a post last night about the ramifications of short selling or losing a home to foreclosure when the First Time consultation Tax Credit was taken in connection with the purchase of the home. I realize that this applies to a relatively small subset of people ... those that purchased a home during the limited time that the homebuyer tax credit was available, and now are in danger of losing the home. For that subset of people, however, this can cause a lot of sleepless nights. I'd like to shed a little more light on the topic.First, let me preface … (2 comments)
short sale: Will a Short Sale mean that I have to repay the First Time Homebuyer Tax Credit?
- 02/25/11 04:37 PM
As a real estate attorney and agent, I often get calls from clients with questions that require the skill and expertise of both. I recently spoke with a client who was asking about whether he would be required to repay the first time homebuyer tax credit (which he received last year when he purchased a home), if he short sold the home for which he received the credit. The answer is a little more complicated than can be addressed in detail here, but generally speaking, there is some risk involved.I would be happy to speak directly to anyone finding themselves in this … (2 comments)
I have a client with whom I have been working for nearly a year to short sell her home. She has two loans in place, and is approximately $120,000 upside down on a house that is worth about $99,000 right now. The first lender took about six months to approve the short sale, but finally did. The second lender, Chase, has approved the sale, but is requiring an "Arms-Length" addendum to the Purchase Contract prior to authorizing the release of the lien and waiver of the right to pursue the deficiency. As a lawyer and Realtor, I spent some time with … (1 comments)
;)
;)
