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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation Posted by mike on May 12, 2008 at 6:04 AM In Reply to: Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation posted by Kim on May 10, 2008 at 11:35 AM : : Hi All, : : I'll try to keep this as short as possible and any help is much appreciated. : : Situation: : : As an investor I built a spec home (not my primary residence) with a builder in the Phoenix-area. All financing was taken out in the investor's name and profits/costs were split 50/50 between investor and builder. After 1 year of sitting on the market the builder went MIA and I was stuck with the entire mortgage. A short sale has proven unsuccessful and the likelihood of moving the house at discount anytime soon seems low. The monthly payment at 100% and stress associated with the situation is a huge drain and I want to exit the deal asap. Credit score hit is not a concern; builder is now a former friend so I do not want to pursue legal action; I have personal assets that I want to ensure are protected. : : Questions: : : - In my limited understanding of AZ foreclosure laws I believe my personal assets are safe from deficiency judgment as the home sits on less than 2.5 acres and is a single family home - can anyone confirm my understanding? : : - I am lost on tax consequences? Assuming debt is forgiven is this taxable (this is not my primary residence)? Is the amount forgiven by the bank "negotiable"? Are options such as deed-in-lieu of foreclosure / voluntary foreclosure "better" than forcing the bank to go through the courts? : : - I live in Illinois and am having a terrible time finding legal advice on this situation from an attorney in AZ - I've been turned down dozens of times by various real estate attorneys over the phone - most seem uninterested in dispersing minimal advice as I am not looking for a long-term client relationship (understandable, but frustrating). I have an accountant that prepares my taxes, but I'd like legal consul from someone more familiar with the legal and financial aspects of this situation - any advice for seeking a competent attorney or CPA? : : Again I appreciate any information as all the stress (both financial and mental) of this situation is really starting to get to me and research on Google is only providing so much info. Thanks! : Why wait for foreclosure to happen. Why not contact a loss Mitigation company or your Lender and see what can be done to save : your credit since it seems you do not want the house. : Why not do a Deed-in-Lieu of Foreclosure. hmmm?? also in illinois here so advice is based on law here. Not sure what it matters being under 2.5 acres... Many times bank never seek a personal deficiency judgement. And when do they dont pursue them just record them in case you have another property in future to attach too. Would be good if bank doesnt know you live in illinois. Probably wouldnt file deficiency here. If at judgement stage .. read it must include for a personal deficiency.. if not it is a IN REM (on property only) Deed in lieu is best to eliminate any possible liablity. Create trusts or other entitity and transfer assets to. Follow Ups: Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation CC in OC 2:46 PM, 05/12/08 (5) Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation mm 10:49 AM, 05/16/08 (4) Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation Kev. 7:56 AM, 05/24/08 (0) Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation Jane lee 0:44 AM, 05/23/08 (0) Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation CC in OC 4:47 AM, 05/20/08 (1) Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation Reggie 3:41 PM, 08/05/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Hi All, : : : I'll try to keep this as short as possible and any help is much appreciated. : : : Situation: : : : As an investor I built a spec home (not my primary residence) with a builder in the Phoenix-area. All financing was taken out in the investor's name and profits/costs were split 50/50 between investor and builder. After 1 year of sitting on the market the builder went MIA and I was stuck with the entire mortgage. A short sale has proven unsuccessful and the likelihood of moving the house at discount anytime soon seems low. The monthly payment at 100% and stress associated with the situation is a huge drain and I want to exit the deal asap. Credit score hit is not a concern; builder is now a former friend so I do not want to pursue legal action; I have personal assets that I want to ensure are protected. : : : Questions: : : : - In my limited understanding of AZ foreclosure laws I believe my personal assets are safe from deficiency judgment as the home sits on less than 2.5 acres and is a single family home - can anyone confirm my understanding? : : : - I am lost on tax consequences? Assuming debt is forgiven is this taxable (this is not my primary residence)? Is the amount forgiven by the bank "negotiable"? Are options such as deed-in-lieu of foreclosure / voluntary foreclosure "better" than forcing the bank to go through the courts? : : : - I live in Illinois and am having a terrible time finding legal advice on this situation from an attorney in AZ - I've been turned down dozens of times by various real estate attorneys over the phone - most seem uninterested in dispersing minimal advice as I am not looking for a long-term client relationship (understandable, but frustrating). I have an accountant that prepares my taxes, but I'd like legal consul from someone more familiar with the legal and financial aspects of this situation - any advice for seeking a competent attorney or CPA? : : : Again I appreciate any information as all the stress (both financial and mental) of this situation is really starting to get to me and research on Google is only providing so much info. Thanks! : : Why wait for foreclosure to happen. Why not contact a loss Mitigation company or your Lender and see what can be done to save : : your credit since it seems you do not want the house. : : Why not do a Deed-in-Lieu of Foreclosure. : hmmm?? also in illinois here so advice is based on law here. : Not sure what it matters being under 2.5 acres... : Many times bank never seek a personal deficiency judgement. And when do they dont pursue them just record them in case you have another property in future to attach too. : Would be good if bank doesnt know you live in illinois. Probably wouldnt file deficiency here. : If at judgement stage .. read it must include for a personal deficiency.. if not it is a IN REM (on property only) : Deed in lieu is best to eliminate any possible liablity. : Create trusts or other entitity and transfer assets to. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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