Please consult with an attorney before moving forward with any decision. You mentioned that you modified your loan. By doing so you might (or might not) have lost the protection offered by the anti-deficiendy statute. I am not a lawyer and can not provide legal advice, but it is my understanding that the proteciton is only for purchase money. If your loan modification was done similar to a refinance you might have lost that protection.
If you do a short sale you will be getting a settlement from the bank, where the deficiency might be forgiven, or they might ask for a non-secured promisory note. That might be your best alternative. If you foreclose and you are not protected by the statute they might come after you for the deficiency.
I live and work in that area and will be happy to assist you.
Carlos J. Ramirez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
It sounds like your bank is willing to work with you, first I would contact them and ask them what options they will offer you. Then I would suggest you speak to an attorney. Once you know your options you will be able to decided which way to go. If you need some resources please give me a call.
Have you made contact with a lawyer or accountant on this matter yet? I've got contacts who will not charge you to talk about this matter.If you do a short sale you will be getting a 1099 from the bank at the end of the year which may or may not be taxed as income. The deficiency might be forgiven, or they might ask for a non-secured promisory note.
If you allow the bank to foreclose and you are not protected by the statute they might come after you for the deficiency.
I've helped others in situations like this prior, no situation is the same however but we may be able to help.
We are a property management company and manage hundreds of homes in the East Valley and may be able to help you if you contact us quickly.
Arizona Elite Properties
Sorry to hear about your situation. Arizona is a "non-deficiency" state, meaing that in normal situations, the lenders are prohibited in coming after the homeowner/borrower for the difference on the shorted payment in a short sale.
If you need to sell the home, my short sale negotiator will strive to get you a release from any further obligation when your home sells. Most Realtors will be able to coordinate this for you.
By the way, banks prefer a short sale over a foreclosure because they will get a higher price.
If you would like to see the Arizona statutes that deal with this subject or an excellent webinar that will answer most of your questions, feel free to contact me.
Jeff Masich, Realtor
Arizona Homes and Land
Short Sales are done at no cost to you, the banks would pay the fees to us. We would send you all of the paperwork to sell the house, the Short Sale paperwork etc. The Short Sale process could be made pretty simple on your end, we would handle all the details locally in AZ. Typically you would not need to even come to AZ, we could do everything remote for you.
It is possible that you would have an amount to pay back to the bank. Lets talk soon and further evaluate your situation to determine the particulars of your Short Sale and the best course of action to take.
Aside from bringing the cash to the table at closing, which I'm sure is not a viable option, the only other choice you have is a short-sale.
You said the bank might not accept it. Do you have reason to believe they won't? If you have a valid hardship, there's no reason to believe they won't take a short-sale versus foreclosing on the home.
A short-sale, if done properly, saves them a TON of time/effort/money vs. the foreclosure, so they typically prefer this route to the alternatives.
Hope this helps!
Century 21 All Star, REALTORS
No, you can't sell your home and get a loan for what you still owe to pay off that amount. There wouldn't be anything to secure that loan. Well, I suppose you could try to get an unsecured credit line, but that's a big chunk of change, it sounds like you wouldn't qualify (out of job with no savings) and the payment would likely be more than what you're in the hole for now.
I'd call Kevin Hardin. http://www.mortgagemediationgroup.com/ They do more than mediate mortgages and negotiate short sales. They'll cover multiple options.. It's an attorney's office. They're very good.
Best of luck with your decision!