FORECLOSURE ALTERNATIVES · ARIZONA & MARICOPA COUNTY

Owe More Than the House Is Worth?
An approved short sale is a way out.

If you’re underwater on a home you can no longer afford, a short sale lets you sell for less than you owe — with your lender’s sign-off and no foreclosure on your record. We handle the lender, the paperwork, the negotiation, and the buyer. You don’t lift a finger, and it costs you nothing out of pocket.

Informational only — not legal, tax, or financial advice.

SHORT SALE HELP

Underwater and out of good options?

You owe more than the house is worth, so you can’t sell it the normal way — that would mean bringing cash you don’t have to the closing table. You can’t refinance out. And every month the payment gets heavier. It’s a genuinely stuck position, and it’s more common in Maricopa County right now than most people realize.

A short sale is the managed exit: you sell with the lender’s approval for less than you owe them, avoid a foreclosure on your record, and in many cases come out in a materially better financial position than letting it foreclose. Depending on your situation, that can even mean less spent overall — but which path is right for you depends on details only you and your advisors can weigh.

WHAT YOU GET

Everything we do — for $0 out of your pocket.

Add it up: a professionally managed exit, possible cash at closing, a softer credit outcome, and a bill of $0 from us. That’s the point of doing it right.

Unbiased Options is a licensed Arizona real estate brokerage. Nothing on this page is legal, tax, or financial advice. Every situation is different — please consult your own attorney, CPA, or financial advisor before making a decision.

SIDE-BY-SIDE

Why a short sale usually beats letting it foreclose.

A Short Sale
Credit
Generally viewed more favorably than a foreclosure.
Buy Again
Many people qualify for a mortgage again sooner.
Cash to You
Relocation money at closing is often possible.
Control
You sell on a managed timeline, with dignity.
Record
It's a sale — not a foreclosure.
Letting It Foreclose
Credit
A more severe, longer-lasting hit.
Buy Again
Typically a longer wait before you can finance again.
Cash to You
$0 — you're simply removed from the home.
Control
The lender runs the clock, not you.
Record
A recorded trustee's sale on your history.

General comparison for a typical situation. Outcomes vary by loan type, lender, and your circumstances — confirm the specifics with your attorney and a credit professional.

THE UNBIASED PART

We'll tell you straight if it's the wrong move.

A short sale isn’t right for everyone, and we won’t steer you into one that doesn’t serve you. You’re the one we’re here to help — our job is to lay out every option clearly and honestly so you can make the call that’s best for your family.

If reinstating, refinancing, a loan modification, or a straight sale is actually the better path for you, we’ll say so and point you in that direction. Getting you to a good outcome is the whole job. What that outcome should be is a decision for you and your advisors.

Unbiased Options is a licensed Arizona real estate brokerage. Nothing on this page is legal, tax, or financial advice. Every situation is different — please consult your own attorney, CPA, or financial advisor before making a decision.

THE CLOCK IS REAL

Once the Notice of Trustee's Sale is recorded, the timeline moves fast.

Arizona is a non-judicial foreclosure state — there’s no courtroom, just a trustee’s-sale clock that keeps ticking. The earlier you reach out, the more options are on the table and the more time there usually is to work with. Wait too long and the best moves can come off the table.

There’s no cost and no obligation to find out where you stand — so it’s worth finding out now, while there’s still room to work.

A CLIENT WE HELPED

“I was stuck — working hard on a house I couldn't sell.”

A homeowner we worked with bought new from the builder in 2023 with an FHA loan and 3% down — around $375,000. A nearly identical home down the street, bought with conventional financing and 5% down, had already sold for about $280,000. Two years later our client still owed roughly $355,000 on a home the market now valued far lower. Underwater, and stuck: they couldn’t sell to an investor and couldn’t bring cash to a traditional closing.

2023 — Purchase
~$375,000
FHA loan, 3% down
2026 — Today
~$280,000
what comparable homes now sell for
Purchase price (2023)~$375,000
Down payment (3%)~$11,250
Still owed on the loan (2026)~$355,000
Comparable home down the streetforeclosed / sold ~$280,000
Equity after three yearsabout −$75,000
Three years of payments in, and the home was worth roughly $75,000 less than the balance owed. A normal sale would have meant bringing that gap in cash to closing — money the owner didn't have.

We walked them through every option, ran the short sale, and negotiated the exit — including relocation assistance at closing. They left the situation behind and moved forward. Same brokerage, same honest process we’d run for you.

Representative example based on a real client situation; identifying details changed and figures rounded for illustration. Your numbers and outcome will differ.

THE ARIZONA DETAIL MOST AGENTS MISS

In Arizona, walking away clean depends on the fine print.

Here’s what trips people up. Arizona’s anti-deficiency law can protect a qualifying homeowner — but a short sale is not a foreclosure, so whether you’re fully off the hook can depend on your loan type and exactly what the lender’s approval letter says. Get it wrong and you could sell the house and still be pursued for the shortfall.

Getting the deficiency waived in writing is one of the most important pieces of the whole deal — and it’s exactly what we work to negotiate for you.

General information about Arizona law, not legal advice. Your protection depends on your specific loan — confirm it with your attorney.

WHY ARIZONA IS DIFFERENT

The forgiven balance often isn't taxed in Arizona — here's why.

In a lot of states, when a lender forgives part of what you owe, the IRS can treat that forgiven amount as taxable income — you get a Form 1099-C and it can land on your tax return. Arizona homeowners are often in a meaningfully better spot, and it’s worth understanding why.

When Arizona’s anti-deficiency statute protects your home, your loan is treated as non-recourse — the lender’s only remedy is the property itself, not you personally. And under federal tax rules, forgiveness of a non-recourse loan generally does not create cancellation-of-debt income. Arizona attorneys describe the tax result in these qualifying cases as “no debt discharge income… no tax consequence.”

The catch: this generally applies to a purchase-money loan (the original loan you used to buy the home) on a qualifying property — 2.5 acres or less, a single one- or two-family dwelling. Cash-out refinances and home-equity lines used for other things may not qualify, and the lender still issues a 1099-C (which should be marked “not personally liable”). Whether it applies to you depends on your loan — which is exactly why the details matter.

This is general information, not tax or legal advice, and tax rules change. We are not accountants or attorneys. Please confirm your specific situation with your CPA and attorney before relying on any tax outcome.

WHY WHO YOU CALL MATTERS

There are a dozen ways to blow a short sale. Most agents have never done one.

A short sale isn’t a normal listing — it’s a negotiation with the lender’s loss-mitigation desk, and it’s intricate. We’ve seen homeowners listed by a well-meaning agent at a price that will never sell, with the short-sale box not even checked on the MLS. Months later they’re still making payments they can’t afford, still on the market, with no idea what’s happening — and they often land in the same place anyway, just more worn down. That’s what hiring wrong can cost.

Experience here isn’t a nice-to-have. It’s the difference between walking away clean and getting buried in a process you didn’t understand.

HOW WE RUN YOUR SHORT SALE

Five steps. We do the heavy lifting.

01
Confirm you're actually underwater
Honest comps, no guessing. If a short sale isn't your best move, we'll tell you.
02
Build the lender package
Hardship letter, financials, BPO/CMA, certified net sheet — we assemble all of it. You sign; we do the work.
03
Price it to move and find the buyer
We price for velocity and find a patient buyer who's still there when the lender approves. Most agents don't even know this game exists.
04
Negotiate loss-mitigation
We work the lender's desk, push the approved number, and fight for a written deficiency waiver.
05
Close it and beat the clock
Get lender approval, close, and walk you out — with relocation assistance if we can secure it.
BEFORE YOU DECIDE

We're your real estate team — not your CPA or your attorney.

Two things to take to the right professional:
📝
Ask your CPA about taxes. Forgiven debt can be reported on a Form 1099-C. Whether it’s taxable depends on your loan and the exceptions that may apply (such as Arizona’s non-recourse protection or IRS Form 982). Rules change year to year — get your specifics confirmed.
⚖️
Ask your attorney about liability. Whether Arizona’s anti-deficiency law fully protects you — and whether your approval letter truly waives the deficiency — is a legal question for a licensed Arizona attorney.
This entire page is informational only. Unbiased Options is a licensed Arizona real estate brokerage. Nothing here is legal, tax, or financial advice, and no attorney-client, CPA, or advisory relationship is created by reading it. Always consult your own attorney, CPA, or financial advisor before making a decision about your home or your finances.
COMMON QUESTIONS

You're probably wondering…

Often, no — and this is where Arizona can differ from other states. When Arizona’s anti-deficiency law protects your home, the loan is treated as non-recourse, and forgiveness of a non-recourse loan generally doesn’t create taxable cancellation-of-debt income under federal rules. Arizona attorneys describe qualifying cases as having “no debt discharge income… no tax consequence.” It typically applies to a purchase-money loan on a qualifying home; the lender still issues a 1099-C (marked “not personally liable”), and cash-out refinances or HELOCs may be treated differently. We are not accountants.

Consult your financial advisor or attorney about your specific situation.

It can — but a short sale is not a foreclosure, so it can depend on your loan type and exactly what the lender’s approval letter says. Getting the deficiency waived in writing is exactly what we work to negotiate.

Consult your financial advisor or attorney about your specific situation.

A short sale is generally viewed more favorably than a foreclosure, and many people are able to qualify for a mortgage again sooner than they would after a foreclosure. Your exact impact depends on your credit profile.

Consult your financial advisor or attorney about your specific situation.

Often yes — but the clock is running. Engaging a short sale can sometimes create more room to work. The sooner you reach out, the more options are typically available.

Consult your financial advisor or attorney about your specific situation.

Nothing from us. The lender pays our commission at closing. We never take a fee directly from you.

Consult your financial advisor or attorney about your specific situation.

In many cases, yes — relocation assistance is often line-itemed at closing. We can’t promise it, but it’s standard practice and we know how to ask.

Consult your financial advisor or attorney about your specific situation.

Find out where you stand — before the clock runs out.

No cost. No obligation. No pressure. Just an honest look at every option you’ve got, in writing within 24 hours. Worst case, you learn something. Best case, you find a managed way out with your credit and your dignity intact.

Informational only — not legal, tax, or financial advice. Call (480) 630-0590.