One option that an Arizona homeowner may have if they are delinquent in payments and facing potential foreclosure is to short sell their home. A short sale means working with their real estate professional and their lender to try and get the payoff balance reduced so that the seller does not have to bring money to the closing table. These are complex transactions and homeowners should consult a real estate professional and seek appropriate legal and tax advice in such transactions. There are many options available. Homeowners in this situation are strongly encouraged to explore all potential options including all of the following:

1. Talk to your lender. There are many lenders who have created forbearance (forgiving part of the back payments and interest) or loan modification programs (to alter the interest rate or payments). Find out what your lender is willing to do before you decide to sell your home.

2. Rent the home. It may be possible for you to rent the home without resorting to the sale of it.

3. Contact the Pima County Community & Economic Development Department’s Foreclosure Prevention Coalition. They hold foreclosure prevention workshops, have a number of resources and may be able to help you keep your home. They even have a very detailed workbook called the “Arizona Foreclosure Information Workbook”

4. Consider bringing money to the closing table as the seller to pay your loan off in full.

5. Talk to a bankruptcy lawyer about the potential of filing for bankruptcy protection.

6. Surrender a Deed in Lieu to your lender in exchange for them releasing you from the liability.

7. Contact HomeOwner Assistance Organizations that offer help to distressed homeonwers. Here are a few of them:

• Hope Now
• Neighborhood Assistance Corporation of America
• Work It Out

8. Call the Arizona Foreclosure Help Line at 1-877-448-1211 for over the phone counseling.

These many only be a partial list of your options. Nothing in this post is meant to be construed as legal or tax advice and as with all complex homeownership issues you should always contact appropriate legal and tax professionals before taking action.