Home Selling in 85379>Question Details

Ljsmom, Home Seller in 85379

Can we as the seller back out of a short sale?

Asked by Ljsmom, 85379 Thu May 26, 2011

We found a buyer for the short sale of our home here and just found out that we will have to pay taxes because we did another short sale less than 2 years ago. Can we back out of this current sale?? It looks like forclosure is our only choice.

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Answers

9
Possibly...if you haven't delivered the Short Sale Agreement letter to the buyer, then you have the option. I would need a little more info if that isn't the case.
0 votes Thank Flag Link Thu Mar 20, 2014
Have you tried to find out if the taxes will be paid by the Shortsale?
Maybe.
And you shouldn't have to worry about a Deficiency Judgement; Arizona is a Non-Recourse State.
Something else to check on, because there are exceptions to the Non-Recourse laws.

It is unfortunate that you are forced into a Foreclosure; consulting a Real Estate Attorney would probably be worth it; I doubt that there are any R.E. attorneys here on Trulia.

Good luck and may God bless
0 votes Thank Flag Link Thu May 31, 2012
Arizona is a non-Recourse state but that does not apply to short sales.
Flag Tue Oct 1, 2013
The basic answer is yes, but immediately talk to your real estate listing agent and more specifically to your real estate lawyer. We don't have enough information to offer an informed opinion. There are risks that need to be addressed.
Loren 623-688-0004
0 votes Thank Flag Link Thu May 31, 2012
It depends. If you have recieved approval from the bank, then you may accept or not accept the bank's approval. Refer to AZDRE website for more info on your rights as a seller in a short sale.
0 votes Thank Flag Link Mon May 30, 2011
Your first step should be with your Realtor and his/her Broker. What you are after is a mutual recission of the contract. Don't be spending money on lawyers & accountants until you take the necessary first steps. You can also contact ADRE and find out what your legal rights are under AZ real estate law.
0 votes Thank Flag Link Fri May 27, 2011
In order to best protect yourself consider consulting with an attorney who specializes in real estate, he/she can best advise as it relates to your specific situation.
0 votes Thank Flag Link Fri May 27, 2011
Discuss this with your REALTOR and Attorney.
It depends on how the contract / offer was written and in what stage of the process you are in.
0 votes Thank Flag Link Fri May 27, 2011
Where are you in the selling process? Has your bank approved the short sale? If your bank has not approved the short sale you could probably mutually agree to terminate the agreement. But the key language is 'mutually' agree. Otherwise you will have to negotiate with the buyer to resolve the situation.

And as is pointed out, check with a tax professional as well as an attorney as you may be liable for for the banks loss in a foreclosure should your state allow them to do so.
0 votes Thank Flag Link Thu May 26, 2011
Actually, you should discuss all this with your accountant. You may have to pay taxes on the amount of relief you receive from a foreclosure.

Barbara Nichols
Barbara@BarbaraNichols.com
0 votes Thank Flag Link Thu May 26, 2011
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