Foreclosure in Phoenix>Question Details

Annette, Home Seller in Phoenix, AZ

Thanks for the advice. Can anyone recommend a reputable attorney specializing in short sales and helocs? The one I have contacted in the past takes

Asked by Annette, Phoenix, AZ Sun Mar 21, 2010

awhile to get back to me from community legal and the attorney I met yesterday teaching about foreclosures and short sales his bread was buttered by representing the banks. I want someone who is willing to help the homeowner. All of this still is a grey area for everyone involved and there seems to be no real communication between banks as they have continously lost my paperwork 80 pages at least 20xs. What makes me most angry is my loan was deemed predatory but I do not have $50,000 to fight the banks. Do you think the attorney general will step in and start masking these people work with homeowners? My 4 neighbors had Aurora all went into foreclosure. I heard a number that last year short sales were 10 per month now there are 55,000 and some banks do not have the money to hire the man power to deal with the growth or keep up with changes that keep occurring from the federal government.

Thanks, Annette

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Dear Annette:

Sorry to hear about your situation.

Yes, there is some excellent advice on what a homeowner needs to be aware of in a short sale, including attorneys you can contact on the "Arizona Short Sale Advisory" published by the Arizona Department of Real Estate for homeowners. To view this advisory, click on the Arizona Short Sale Advisory link at: http://www.arizonahomesland.com/forsellersorlandlords.html

If I can help you in any way, feel free to ask.

Regards, Jeff

Jeff Masich, Realtor®
Arizona Homes and Land
http://ArizonaHomesLand.com
480-556-0940
JeffMasich@ArizonaHomesLand.com
HomeSmart Real Estate
0 votes Thank Flag Link Sun Mar 21, 2010
I did meet with Naca (xmas eve) and Take charge of America went to a conference on Sat at Indian Steele Park the agent said he would contact me after reviewing my file. So many changes have occurred since August. The money is not there for these organzations to really help and the government keeps changing programs. I have been very proactive. Thanks again for all your great advise this was helpful and beneficial. I will let you know what happens I am open to the miracle.
Annette
0 votes Thank Flag Link Mon Mar 22, 2010
If you check our site, http://www.short-sale-phoenix.com you'll find a tab for legal services. There is a link to a non profit group, Take Charge American, who can give you a referral to free legal services.
0 votes Thank Flag Link Sun Mar 21, 2010
I feel your frustration and you have some good advise here but let me add something, short sale is a form of foreclosure and has equally damaging ramifications that will keep you out of the housing market for at least 3 years after all is said and done. Unfortunately you need to continue sending as many documents as you have to while recording them along the way becuase the only thing that will save you from foreclosure and again short sale is a form of foreclosure, is persistence and documentation. Eventually you may need to go to court and if you are armed with a suit case load of paperwork you may be able to use that and the predatory loan as a defense to fight the foreclosure and let me tell you judges are getting fed up with these banks.

Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of-foreclosure

Here are some of the ramifications of foreclosure, short sale or deed-in-lieu-of-foreclosure, there are many more like your job, yes employers are checking credit records these days.

Your credit score will be reduced by 200-400 points, short sale a little less 100-200 points.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure
* Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
* Buying After a Foreclosure with Extenuating Circumstances
The waiting period is 3 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure
The waiting period is 4 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure with Extenuating Circumstances
The waiting period is 2 years up to 7 years.
* Buying After a Short Sale
The waiting period was just upped from 2 to 3 years. However, if a seller does not have a 60-day late pay, that seller may immediately buy another home. It's a reason to stay current on your payments while the home is on the market as a short sale.
In addition to the waiting period, most loans require a minimum down payment of 10% and a minimum FICO score of 680. The home purchase must also be the principal place of residence, not a rental nor a vacation home.

Lastly, most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.
0 votes Thank Flag Link Sun Mar 21, 2010
Hello Annette and thanks for your post.

Unfortunately, the only attorneys willing to help you are likely to be those that will require payment per hour for their services. Because of the large number of homeowners in this same position and the unlikeliness of obtaining huge money judgments from banks, there are no attorneys willing to work for free to help homeowners nor to work on contingency (payment after settlement in court). If you are willing to pay for a quality real estate attorney, contact the Bar Association in Phoenix and have them give you a list of the real estate attorneys in your area.

Knowing that you've already consulted with one attorney, have already had a short sale and were given terms that you cannot accept and are scheduled for foreclosure on June 1, I think that relief, if any, from the State or the Federal government is likely to happen too late to be of benefit to you and your situation at this time. If you cannot get the buyer to help pay the second the money they've requested to complete the short sale nor work with Chase to try to negotiate down the payment amount, then your options are very slender.

As for short sales in general, I would agree that two years ago when short sales were just looming on the horizon, we were all in a state of panic, confusion and chaos. However, two years later, the agents who specialize in short sales and the banks working with us have much more defined "playing fields" and operating procedures. It is not as nebulous or as confusing as it has been in the past, and while we can all offer help, we also know that there are certain banks, such as Chase, who will be unlikely to negotiate.

If you are prepared to pay for an attorney's assistance, contact the Arizona State Bar for a list of qualified real estate attorneys to provide you with assistance.

Good luck!

Sincerely,
Grace Morioka, SRES
Area Pro Realty
0 votes Thank Flag Link Sun Mar 21, 2010
Are you wanting to do a short sale? If so, list with an agent specializing in short sales and have them negotiate it. Only consult with the attorney for advise. If you use the attorney to negotiate you do two things that slows down the process. 1. You add yet another office in which you are just a number to them into the mix and 2. When the banks gets contacted by an attorney, they automatically have to send the file to their legal department which slows down the process tremendously.

You should, however, consult an attorney for advise, but using them to negotiate is not favorable. Be prepared to contribute to the loss on the heloc.

Try calling Sean St. Clair with Lassiter Law Firm 480-218-4445 or Adam Buck - 480-603-4988 for legal advise
0 votes Thank Flag Link Sun Mar 21, 2010
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