mesa Arizona real estate

1 of the biggest issues I deal with as an Arizona real estate lawyer handling foreclosure-related instances is the question of what happens with a second mortgage or house equity line of credit after the 1st mortgage forecloses. The answer to this question requires an analysis of every individual's specific situation, such as the terms of their loan agreement, the circumstances of when they obtained the loan and what the funds were used for, and the distribution of funds upon the foreclosure sale of the property. Although most homeowners would be wise to speak with an Arizona foreclosure lawyer about their situation, the following article supplies a general framework of the Arizona laws that affect a second mortgage lender's ability to collect a deficiency balance owed after the 1st mortgage lender has foreclosed.

1 of the primary distinctions of Arizona law as it relates to a second mortgage lender's capacity to collect a deficiency balance is found in Arizona Revised Statute Section 33-729(A), which limits the lender's capability to seek a deficiency if the cash loaned "is given to secure the payment of the balance of the purchase price" supplied the property is a single 1-family or two-family residence and consists of two and one-half acres or less. In other words, if the loan was "purchase money" used to acquire the home, the lender's only choice is to foreclose in the event of non-payment. If the lender can't foreclose due to the fact the primary lender already has, it has no further recourse. As an initial matter, it should be understood that this discussion only applies to loans secured by properties located in Arizona. Arizona's laws regarding a lender's ability to collect a deficiency balance are substantially distinct from the laws of other States, and if you have a loan on a property in an additional State, you need to obtain the correct data from that jurisdiction.

Fortunately, flagstaff Arizona real estate have made it clear that a refinanced loan retains its original character for purposes of the anti-deficiency statute, so a refinance will not affect the protection a homeowner might have under Section 33-729(A). Simply because several refinances involved both buy funds and non-purchase money elements, nonetheless, homeowners really should comprehend that some second mortgage lenders will seek to recover at least the non-buy dollars portion of the loan. There are defenses available to such claims, and homeowners facing demands from lenders really should seek the advice of an experienced Arizona foreclosure agent to discuss how to respond to such a lender's demand Regrettably, it is impossible to address each scenario in a short article, and any homeowner facing foreclosure really should seek additional guidance regarding tax implications, how to handle the HOA, and how your particular loans will be treated under Arizona law after a foreclosure.
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