In the July/August 2010 issues of Arizona Attorney, Christopher Combs and Adam Martinez wrote a very interesting article about the top issues facing distressed homeowners today. A lot of the sellers are worried about deficiency, and what the banks are able to do after a short sale or foreclosure. I’d like to hit the highlights here:
- No deficiency allowed after foreclosure of home
- No foreclosures by second mortgages
- Lender can sue borrower of non-purchase money loan
- Protection unclear if “cash out” refinancing
- Anti-deficiency statutes unchanged
- Rights of tenants after foreclosures
- No liability for short sale difference unless agreement
- Cancellation of short sale while waiting on lender approval
- Listing broker and buyer’s broker not required to reduce commission if demanded by lender
- Tax consequences of debt forgiveness in short sales and foreclosures
For a copy of the report, please complete this form: