In real estate, a short sale occurs when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor (i.e., the seller). Circumstances determine whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing.
An arms-length or short sale affidavit is a document created by a bank in an attempt to prevent sellers from selling to relatives or friends to act as a straw buyer. Sometimes sellers make such side agreements. Then, after the transaction closes, the pretend buyers quickly transfer title back to the seller. This practice, in affect, means the sellers have repurchased their home at maybe half the cost, which greatly benefits those sellers.
A Phoenix, Arizona Short Sale or Arms Length Affidavit is a legal document that serves as an essential requirement in real estate transactions, particularly during short sales. This affidavit exists to ensure that the involved parties in the transaction maintain an arm's length relationship, meaning that they are mutually independent and are not related or have any personal or business connections. The Phoenix Arizona Short Sale or Arms Length Affidavit helps prevent fraudulent activities and provides a level of transparency in the transaction. It declares that all parties involved in the short sale, such as the buyer, seller, real estate agents, mortgage lenders, and any other parties, are acting in good faith and are not colluding to commit fraud or engage in any prohibited activities. This document typically includes various important details such as the names and contact information of all parties involved, property address, type of transaction (short sale), and the acknowledgment of the arm's length relationship. The affidavit may also include a declaration stating that no hidden agreements, side deals, or undisclosed benefits exist between the buyer and seller. In Phoenix, Arizona, as well as in other locations, there might be different variations or types of Short Sale or Arms Length Affidavits, but they all aim to achieve the same goal of ensuring an impartial transaction and preventing fraudulent activities. Some specific types of short sale affidavits may include: 1. Buyer's Short Sale Affidavit: This affidavit is signed by the buyer involved in the short sale transaction, affirming their understanding of their responsibilities, agreements, and obligations during the process. 2. Seller's Short Sale Affidavit: Signed by the seller, this affidavit confirms that they understand the nature of the short sale, its implications, and their agreement to cooperate honestly and transparently. 3. Agent Short Sale Affidavit: This affidavit is signed by the real estate agent representing the buyer or seller, providing assurance that they have no personal interest or connection to the property or individuals involved in the transaction. 4. Lender's Short Sale Affidavit: Some lenders may require a separate affidavit, ensuring that they have reviewed the transaction, that the parties are acting at arm's length, and that the offer meets their guidelines. These different types may vary in format and content, but they collectively serve as important documentation in short sale transactions, specifically in Phoenix, Arizona, ensuring that all parties involved maintain an arm's length relationship and act in compliance with ethical and legal standards.A Phoenix, Arizona Short Sale or Arms Length Affidavit is a legal document that serves as an essential requirement in real estate transactions, particularly during short sales. This affidavit exists to ensure that the involved parties in the transaction maintain an arm's length relationship, meaning that they are mutually independent and are not related or have any personal or business connections. The Phoenix Arizona Short Sale or Arms Length Affidavit helps prevent fraudulent activities and provides a level of transparency in the transaction. It declares that all parties involved in the short sale, such as the buyer, seller, real estate agents, mortgage lenders, and any other parties, are acting in good faith and are not colluding to commit fraud or engage in any prohibited activities. This document typically includes various important details such as the names and contact information of all parties involved, property address, type of transaction (short sale), and the acknowledgment of the arm's length relationship. The affidavit may also include a declaration stating that no hidden agreements, side deals, or undisclosed benefits exist between the buyer and seller. In Phoenix, Arizona, as well as in other locations, there might be different variations or types of Short Sale or Arms Length Affidavits, but they all aim to achieve the same goal of ensuring an impartial transaction and preventing fraudulent activities. Some specific types of short sale affidavits may include: 1. Buyer's Short Sale Affidavit: This affidavit is signed by the buyer involved in the short sale transaction, affirming their understanding of their responsibilities, agreements, and obligations during the process. 2. Seller's Short Sale Affidavit: Signed by the seller, this affidavit confirms that they understand the nature of the short sale, its implications, and their agreement to cooperate honestly and transparently. 3. Agent Short Sale Affidavit: This affidavit is signed by the real estate agent representing the buyer or seller, providing assurance that they have no personal interest or connection to the property or individuals involved in the transaction. 4. Lender's Short Sale Affidavit: Some lenders may require a separate affidavit, ensuring that they have reviewed the transaction, that the parties are acting at arm's length, and that the offer meets their guidelines. These different types may vary in format and content, but they collectively serve as important documentation in short sale transactions, specifically in Phoenix, Arizona, ensuring that all parties involved maintain an arm's length relationship and act in compliance with ethical and legal standards.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
