First, Arizona law regarding distressed properties and anti-deficiency statutes is often misunderstood and misapplied. If not handled correctly, homeowners could face huge liability for a deficiency following a short sale. Similarly, REALTORS® could face potential liability for malpractice if their clients are later sued by the bank.
Second, attorneys can often use Arizona law, where applicable, to negotiate favorable short sale terms for distressed homeowners. A homeowner recently contacted our office as an act of desperation after he and his REALTOR® ran into a roadblock regarding their short sale. Just before close of escrow, the lender notified the homeowner that it was demanding the homeowner sign a promissory note for $50,000.00 before the lender would provide its short sale approval.
The REALTOR® and the homeowner balked at this request. But after heated settlement discussions with the lender, the lender stood strong in its position and refused to grant its approval without the signed $50,000.00 promissory note. Just before giving up, the homeowner and his REALTOR® decided to hire a real estate attorney as a last-ditch effort to salvage the short sale.
After retaining Christopher J. Charles, Esq. to negotiate the short sale approval, Mr. Charles contacted the lender and demanded the lender’s approval without conditions, including a complete release of all obligations regarding the underlying note. After considering Mr. Charles’ arguments and demand, the lender did a complete 180 in its position and provided the homeowner with the short sale approval letter without conditions and waived the $50,000 promissory note requirement. In summary, the homeowner obtained the short sale approval without conditions and the property closed escrow all within weeks of engaging Mr. Charles.
The above example is just one of our many success stories in helping homeowners who are “under water” on their home. If you or someone you know is facing questions regarding their distressed property, please call our office to schedule an appointment and we will be happy to help.