Arizona Short Sale Articles →     

Arizona Short Sale      Arizona Short Sale Help      Short Sales In Arizona      Short Sell Investment Property

7 Questions Your Agent Should Be Asking You In An Arizona Short Sale

by Charlie Allred

We all know, some people are just better at Arizona short sales than others.  If you are struggling with your home, please pay attention to your real estate agent as she asks you these questions.  They are highly important  and can have an effect on your  lifestyle after the Arizona short sale is over!

Consider tax liability for example… What can you do to avoid owing the government for money you lost? Start by answering the 7 questions below:

  1. When did you purchase this home? And, is the loan a purchase money loan?
  2. Do you have a 2nd loan? If so, was it a HELOC  or home equity line of credit used for purchases other than the home?
  3. Is this home your primary residence?
  4. Have you lived in this primary residence the entire time you’ve owned it? Or at least 2 of the last 5 years?
  5. If you are an investor- can you handle the tax liability? Or are all your assets under water, meaning you could claim technical insolvency?
  6. Have you been paying your home owner’s insurance?
  7. Have you been paying your HOA dues?

Many real estate agents like to discuss how the “Anti-Deficiency” Statute will protect you from all tax liability. Yet, this is not the case.  If your home is your primary residence, the Debt Cancellation Act of Congress should help you avoid tax liability.

If you are an investor, expect a 1099 on the loss for the bank.  However, if you can claim technical insolvency, meaning your assets are worth less than you owe, which isn’t difficult in this real estate market, then you may avoid the tax liability. Why would anyone pay taxes on income they didn’t make?  It doesn’t make sense.  Make sure your real estate professional knows the consequences of a short sale and can refer you to a tax & legal professional.

Learn more about short selling an investment property and the Anti-Deficiency Statute.

Be Sociable, Share!

Leave a Comment

Previous post:

Next post: