More About Short Sales in Arizona
Short sales are often a good way to avoid having a foreclosure notation on your credit report. There may, however, be consequences to your credit rating, since your lender took a loss. There may also be 1099 tax consequences for the debt that was forgiven in the short sale. Finally, your lender may still reserve the right to sue.
While short sales are not common in Arizona, they are occurring. There are requirements that must be met in order to pursue a short sale:
- You have to have an offer on your home
- The bank must approve the short sale
- If you are already in bankruptcy, it will be necessary to secure court approval of any short sale. This means that, while short sales can technically be conducted in bankruptcy, court approval must first be obtained.
If you are considering a short sale and you have not filed for bankruptcy, it may be in your best interests to move forward and get your house sold. That being said, it is a good idea to refrain from making any agreement with your bank or lender about the discharge or forgiveness of outstanding debt without first consulting an experienced attorney.
At Clark Law Offices in Phoenix and Mesa, we help clients throughout Arizona find real solutions to overwhelming debt. If you have questions about a potential short sale, we encourage you to contact us today to schedule a free, no obligation, no pressure consultation with an experienced bankruptcy and debt relief lawyer.
Our offices are conveniently located in Phoenix, just south of the Biltmore, minutes from Hwy 51, and in downtown Mesa.
