Phoenix Short Sales and Foreclosures
Some Banks Ignore Arizona Anti-Deficiency Laws
Arizona anti-deficiency laws limit the homeowners liability in the event of loan default to the amount the lender can recover at at trustee sale or judicial sale providing the real property is 1) on a 2.5 acre or smaller lot, 2) restricted to and utilized for a single-family or dual- family dwelling and the 3) proceeds of the purchase loan (or a subsequent refinance loan) used to pay all or part of the purchase price of the property (better that all of it was). However, some lenders are forcing sellers to take back a personal note in favor of the lender as an inducement for the lender to cooperate in a short sale.
J. Robert Eckley, a prominent Arizona real estate and banking attorney, argues in Counselor’s Corner – Unlawful Acts of Banksthat some banks ignore the Arizona anti-deficiency protection during their negotiations with the seller, who is requesting the bank accept less than the balance owed on the loan and release the lien so the home can be sold in a “short sale”. Some sellers have refused to accept these terms and let their Phoenix property to be foreclosed to avoid any additional financial obligations. Other sellers, who were not made aware of the limitations of the bank to request a personal note, agreed to accept a personal note for all or a portion of the shortfall in the amount the lender received at the time of the short sale closing.
Sellers with limited assets and income at the time of the short sale have been told they may be subject to a deficiency judgment lien for a period of six years from the date of the Phoenix short sale or the banks may opt to sell off the right to recover against the defaulted loan to collection agencies. We’ll have to stay tuned for Mr. Eckley’s next addition of Counselor’s Corner to learn more about your rights and protections under the law.
My area of service and expertise is the Phoenix southeast valley including Chandler homes AZ, Mesa homes AZ, Queen Creek, Tempe and Gilbert AZ homes for sale. If you find you are unable to make your house payments or won’t be able to in the future, call me. I will send you the Arizona Seller Short Sale Advisory and Disclosure and recommend local attorneys who know Arizona law to explain your options and liabilities. If a Chandler, Gilbert, Mesa or Queen Creek short sale is your best option, I will list, market and get it sold for you so you can get on with your life and build for the future.
Sam Elam, Associate Broker with Prudential Arizona Properties, 480-213-1799
Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.
Nearly 1M Loan Modifications So Far in 2010
Nearly 1M Loan Modifications Means Nearly 1M Fewer Foreclosures!
Our much maligned Lending Industry is finally rewriting loan terms to head off foreclosures rather than just being concerned about selling foreclosures the lenders were forced to take back. This will have the effect of stabilizing neighborhoods, communities, home values and our economy.
HOPE NOW Reports Close to One Million Permanent Loan Modifications Completed in 2010
975,000 permanent loan modifications have been completed so far in 2010 and that is 975,000 fewer foreclosures we avoided.
More than 174,000 Loan Modifications finalized in the month of June reflects an increase in the rate of loan modifications as Lenders become more proficient in processing loan modifications.
From January 2010 through June 2010, about 78% of mortgage servicers’ proprietary loan modifications included principal and interest reductions. These are real modifications that make homes affordable in this economy where so many are unemployed or worse – underemployed and underpaid.
In June, the industry completed about 123,000 proprietary loan modifications ~ a 10% increase from the previous month while another 51,205 HAMP Modifications were completed.
Since June 2007, nearly 3.4 million homeowners have saved their homes via permanent loan modifications.
Other June 2010 highlights:
- Foreclosure Starts decreased from 205,479 in May to 191,764 in June, a decrease of 7%.
- Complete Foreclosure Sales decreased from 98,963 in May to 90,350 in June, a decrease of 9%.
- Proprietary loan modifications completed increased from 112,088 in May to 123,150 in June, an increase of 10%.
- Principal and interest reduction modifications completed increased from 86,908 in May to 98,336 in June, an increase of 13%.
- Other retention plans completed increased from 74,004 in May to 83,222 in June, an increase of 12%.
While these statistics show progress is being made in avoiding Phoenix foreclosures AZ, the expiration of the Bush Tax Cuts at the end of 2010 is going to make it more difficult for people to pay for basic expenses and will slow job growth.
Contact your Congressmen and demand they extend Tax Cuts until our economy is back on track and growing again!
Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.FORECLOSURES MAY CAUSE RENTS TO RISE FOR PHOENIX HOMES
In Foreclosure Crisis – Demand for Single Family Homes in Phoenix rises, Arizona Republic article May 3, 2010 reports there has been a 40% drop in desirable rental homes in the Phoenix, Arizona metro area. The high demand for these homes is due in part to the significant number of those loosing their Phoenix homes by foreclosure. Phoenix area apartment complexes still are having a tough time attracting tenants, but rental agencies managing Phoenix single family homes have waiting lists. A year ago, investors were buying a few thousand Phoenix homes each month and turning them into rentals. But now, lenders are holding on to more of their foreclosed Phoenix homes while they work on a backlog of delinquent mortgages. If this trend continues, average Phoenix rents will rise.
Contact Sam Elam, Associate Broker with Prudential Arizona Properties for more information or visit http://www.SamElam.com
Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.Arizona Short Sale Seller Advisory
Arizona Association of REALTORS in conjunction with the Arizona Department of Real Estate have just released a factual, unbiased Arizona Short Sale Seller Advisory to help Arizona Homeowners faced with loosing their homes to learn their options and understand their legal and tax consequences. This essential advisory arms homeowners in financial trouble with information and the tools they need to evaluate their alternatives and make a sound decision.
The Arizona Short Sale Seller Advisory lists ”red flags” to help you identify predatory “Rescue” Scams and Short Sale Fraud, links to HUD approved counselors, a FREE Arizona hotline number, sources of FREE or low cost legal and tax advice, identifies alternatives to a foreclosure, tells you how to communicate with your lender(s) and provides links to Arizona short sale disclosures your REALTOR will use in the Short Sale transaction to protect and inform you about a short sale in the event you, your tax advisor and your attorney decide this is your best course of action. If you don’t have one, they are available to advise you for little or no cost.
Sam Elam, Associate Broker with Prudential Arizona Properties is a Certified Short Sale and Foreclosure Resource and offers additional distressed homeowner resources that go into greater detail and lists several other government help programs. Sam can refer you to Tax Attorneys (pro bono – that’s FREE) to evaluate your potential tax liabilities as a result of a foreclosure, bankruptcy, short sale, etc.
If you can’t pay your mortgage or know you will soon be unable to, seek help as soon as possible. Don’t go through your savings and/or walk away from your home without talking with your Lender(s). And don’t make any decisions without first seeking legal and tax advice to understand the consequences of your decisions. The decision you make today may have long term consequences.
The Arizona Seller Short Sale Advisory provides a list of attorneys who can help or call Sam Elam for attorney referrals at (480) 213-1799. I am here to help when you need assistance.
Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.Categories
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