Legal Question in Real Estate Law in Arizona

Here is my situation:

My husband and I bought our primary residence in 2006 and are significantly upside down in our home. We can afford to make the payments, however things are very tight and the more we discuss it, the more it just doesn't make financial sense to continue paying on a house that others are buying for 150,000 less around us. We have found someone that is willing to purchase our home through short sale (or foreclosure if we have to) and then resell the home to us. Before we do this, we wanted to know more about the banks likeliness to pursue the shorted amount. I am familiar with the short sale process & some laws, but wanted to just be sure before we did this on our own home. Our 1st is for 240,000 and our second is labeled a line of credit for $60,000. It is the "line of credit" that I am concerned about. Can you advise us in this matter?


Asked on 9/16/09, 10:45 pm

1 Answer from Attorneys
Joan Bundy Joan Bundy Law

Why would someone agree to purchase your home and resell it back to you? Is this a friend or a business enterprise? Regardless I would be wary. I would suggest your best option is to stay in the home and see if maybe you can get it refinanced with lower interest rate and/or lower payments. Particularly focus on paying off the second mortgage; whether you call it a line of credit or not, it's still a second mortgage. If it came due you'd be in trouble if you're already upside down with the first mortgage.

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Answered on 9/24/09, 12:56 am


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