| Every jurisdiction has a body of laws that | | | | foreclose on the property and retake it. However, |
| governs all aspects of real estate, and Arizona is | | | | this is not seen as a positive option by the lender |
| no different. Its real estate laws, rules and | | | | most times, as that means they'll need to sell off |
| regulations have been in place for decades, and | | | | the property, often at a loss. A short sale is an |
| given the number of home loan modifications in | | | | agreement between the lender and borrower that |
| Arizona that are being sought, many are | | | | allows the borrower to pay less than the full |
| wondering how or if these laws apply to that | | | | amount owed in a lump sum and have the rest |
| desire. | | | | forgiven. This is usually only possible if the |
| Below is a brief overview of how the real estate | | | | borrower sells the property for less than the loan |
| laws in Arizona affect home loan modification, but | | | | amount. When this happens, there could be issues |
| if you'd like to obtain individual answers to your | | | | with property taxes in the near future, and you |
| questions as they pertain specifically to your | | | | may need those questions answered before |
| situation, contact the attorneys at Phillips & | | | | making a tax mistake. |
| Associates today to schedule an initial consultation. | | | | 2. Sale timeframe on a foreclosure - If a lender |
| In general, real estate law is governed by the law | | | | retakes a property and evicts the borrowers, |
| of contracts, as these transactions tend to be | | | | that lender has the right to sell that property via |
| executed in accordance with those standards. A | | | | auction. However, specific notice and time rules |
| few examples appear below: | | | | must be followed, and until such time as the |
| | | | auction occurs, only the borrower and/or junior |
| 1. Short sale - The short sale is becoming more | | | | lien holder can pay off the delinquent amount and |
| prevalent these days given the number of | | | | remove the home from foreclosure. Any |
| mortgages that are in or near default. If a | | | | transaction that does not fall within this legally |
| mortgage goes unpaid, the lender has the right to | | | | required timeframe could be voided if challenged. |