AZ Foreclosure Realtor

ok, I’ve had TOO many homeowners asking the same questions, over and over and over. It usually goes something like this…

"I hired a Lawyer to help me with my foreclosure. He told me that the Lender can sue me for any losses they incur from the foreclosure sale, and garnish my wages the rest of my life until they’re paid in full…"

My Response - "Not if it’s a standard mortgage used in the purchase of your home (ie- wasn’t a small business loan or otherwise some other very odd loan). If it’s a single family or two-family residence, and is less than 2.5 acres in size, they CANNOT COME AFTER YOU FOR LOSSES!"

"But my attorney said…."

ok- here’s the proof. I took this right from the Arizona Revised Statutes, word for word. Go there, read them all for yourself. You’re looking for Title 33, Chapter 6, Article 2.  You can go there and read them all, word for word, or- here’s the important ones below. This is PROOF that they cannot come sue you, under the ‘normal’ circumstance! Take these to your attorney, and ask him to explain them to you, and see if he STILL thinks that the lenders can come sue you. ;)  -Please note- there ARE situations where the bank’s can sue you for their losses. However, 98% of the homeowners are NOT in those situations. You would know it if you were (ie- took out a business loan on the property, property is a large piece of land, larger than 2.5 acres, etc etc).

33-729. Purchase money mortgage; limitation on liability

A. Except as provided in subsection B, if a mortgage is given to secure the payment of the balance of the purchase price, or to secure a loan to pay all or part of the purchase price, of a parcel of real property of two and one-half acres or less which is limited to and utilized for either a single one-family or single two-family dwelling, the lien of judgment in an action to foreclose such mortgage shall not extend to any other property of the judgment debtor, nor may general execution be issued against the judgment debtor to enforce such judgment, and if the proceeds of the mortgaged real property sold under special execution are insufficient to satisfy the judgment, the judgment may not otherwise be satisfied out of other property of the judgment debtor, notwithstanding any agreement to the contrary.

B. The balance due on a mortgage foreclosure judgment after sale of the mortgaged property shall constitute a lien against other property of the judgment debtor, general execution may be issued thereon, and the judgment may be otherwise satisfied out of other property of the judgment debtor, if the court determines, after sale upon special execution and upon written application and such notice to the judgment debtor as the court may require, that the sale price was less than the amount of the judgment because of diminution in the value of such real property while such property was in the ownership, possession, or control of the judgment debtor because of voluntary waste committed or permitted by the judgment debtor, not to exceed the amount of diminution in value as determined by such court.

 33-730. Limitation on deficiency judgment on mortgage or deed of trust as collateral for consumer goods

A. If both a security agreement and a mortgage or deed of trust have been given to secure payment of the balance of the purchase price of real property and consumer goods or services or the balance of the combined purchase price of such real property and consumer goods or services, no deficiency shall lie thereunder if no deficiency would lie under the mortgage or deed of trust given under such transaction, notwithstanding any agreement to the contrary.

B. For the purposes of this section, consumer goods and services are goods and services used or acquired for use primarily for personal, family or household purposes.

Man, these attorney’s must REALLY hate me right now. I’m ruining their retirement plans.