Hello everyone Jason Wells here with Wells Realty and Law Group thank you for joining me today. In my blog I like to answer real questions that I receive from homeowners who need help with their current real estate situation. Today I wanted to answer that get quite often and it deals with the legal ramifications of completing a short sale.
Often times when discussing the option of a short sale with a homeowner they want to know whether they can be sued after the sale of their home. While I don’t like giving this answer it truly all depends on your lender and your current situation. For seventy percent of homeowners the answer is probably no but for that other thirty percent there are some questions. If you have taken out a home equity loan or line of credit there may be some issues since you have taken money out of your home. Most homeowners will be protected by the Arizona Anti-Deficiency Statute and live in a single family residence that is secured by purchase money. Purchase money is defined as money that is borrowed and used to buy the house. In a short sale we are essentially renegotiating your original mortgage contract to find a price that the home can be sold for. Another great aspect of the short sale process is the ability to pay off a first or second lien. During negotiations if multiple liens on your property exist we can usually have these paid, whether entirely or partially, by the proceeds from your home sale. If you choose to enter foreclosure this debt that is owned, along with your liens, could all fall directly on your shoulders. So while it certainly depends on your property and financial situation most homeowners will be protected from being sued.
To discuss your real estate problems and find the best alternatives to foreclosure contact me through our website or give the office a call today. Here at the Wells Law and Realty Group we can do what other agents can’t.