Az Foreclosure Laws
Az Foreclosure Laws
Should I foreclose on my 2 units of Arizona?
I have 2 properties in Arizona. I can not pay the mortgage on it unfortunately. Should I let it close? Short selling is a better option? I'm reading about anti deficiency laws in the state of Arizona and can not seem to get anything from me after the execution mortgage. (Both accessories are just = family residences …) I hear a short sale can have potentially large fiscal implications. So closure would affect my credit hard, but saves a lot of $ $ huh? Any advice would be great. Thanks everyone!
An exclusion would affect your credit much more difficult that short selling, but both still most likely have very negative effects on your score. If you can not be held responsible for anything after execution mortgage in the state from A to Z sounds like a foreclosure would be the best option here. However, I had the impression that you could be punished with a 1099c (cancellation of debt) for foreclosure and once a short sale. Someone please correct me if I'm wrong. If this is the case, then you could be beaten with some serious tax implications either way. With a short sale the lender agrees that the amount they are paying liquidated his debt to them in full and you will receive a 1099c, most likely, by the difference in how much they owe and what they sell for the home. With a foreclosure, you will remain beaten with a 1099c and the lender in most states still may sue for the difference although this is rare to come after you. Many people just file bankruptcy after a foreclosure (or before or during for that matter) are therefore not responsible for such debts and no longer can come after them after the BK. Check out the pages below for information on short sale and foreclosure. Good luck to you, but you may want to at least consult a bankruptcy attorney to make sure you make the best choice.
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