New short-sale advisory can help homeowners

New short-sale advisory can help homeowners

by Catherine Reagor The Arizona Republic Mar. 17, 2010 12:00 AM

Short sales are many homeowners best option to avoid foreclosure, which is why these lender-approved deals are at record levels in metropolitan Phoenix.

But sellers considering short sales should know all their options and the credit and tax ramifications from the deals first. That's why the Arizona Department of Real Estate worked with industry experts across the state to produce the new Short Sale Seller Advisory.

Besides defining what a short sale is, the advisory provides a check list of what homeowners should consider and do before proceeding.

Through a short sale, a borrower can avoid foreclosure by selling a home for less than what is owed. But the lender must approve the deal, and a buyer has to be found. The seller must also be able to prove he is facing foreclosure.

The advisory provides a check list for homeowners considering short sales. Here are a few of the important points for homeowners from the advisory:

• Be aware of predatory rescue scams and short-sale fraud.

• Contact a free U.S. Housing and Urban Development-approved counselor or your lenders.

• Call Arizona's foreclosure hotline at 877-448-1211.

• Get legal and tax advice.

Michelle Lind, general counsel of the Arizona Association of Realtors, worked with the task force to create the advisory. She said all homeowners considering short sales should check out the advisory first at www.aaronline.com/documents/ssseller_advisory.aspx.

In other news, Steve Betts, a real-estate leader in Arizona, is leaving SunCor Development.

His departure is called a retirement, but Betts definitely isn't leaving a leadership role in the state's growth. The land-use and government-affairs attorney plans to take over as chairman of Urban Land Institute Arizona and become co-president of the Interstate 11 Coalition, the partnership working on a freeway corridor between Phoenix and Las Vegas.