Foreclosure Article


The Mortgage Forgiveness Debt Relief Act

The Mortgage Forgiveness Debt Relief Act generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.  Restrictions and rules apply to the act. For example the debt forgiven must have taken place between 2007 through 2014. 

For more information about the Mortgage Forgiveness Debt Relief Act please visit the website of the Internal Revenue Service.


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QUESTIONS

  • My house was foreclosed on in 2008; the 2nd Mortgage was not used to purchase the home, and the 2nd Mortgagee has now sold the "note" to a collection agency. If the 2nd Mortgagee never filed or sued me on the deficiency can the collection agency pursue the collection of this debt? Who is the holder of the written contract that I had with the original lender?
  • We had a home that was foreclosed on in 2008. We had a first mortgage and a second HELC, both by the same bank. They foreclosed via trustee sale, not judicial foreclosure. Can they come after us for the total amount of the HELC?
  • There is a scam going on with my house and reference for foreclosure need legal assistance ASAP I am disabled and need help my phone number is I need immediate help. Thank you
  • Is a single unit in a large condominium complex treated the same as a single family residence under the AZ anti-deficiency statutes?
  • My house in AZ was foreclosed on& was one of the homes that was part of state of AZ v B of A(national mortgage settlement). Since this foreclosure was part of the successful lawsuit for unfair practices, could I ( and how) can I have it removed from my credit report?
  • Does the Arizona Revenue Service have something similar to the IRS' Mortgage Debt Relief Act of 2007? If you have a foreclosure and subsequent debt forgiven, does Arizona add it to your income or do they have a provision to exclude it (similar to the IRS' Mortgage Debt Relief Act of 2007)?
  • I was in a chapter 13 with my only debt being my mortgage. I found out Monday my house has been sold at auction. I never received any type of notifications that my chapter 13 had been dismissed,or any notifications that I was in foreclosure, as a matter of fact I had sent the mortgage co $4,000 the previous month. I believe the sale of my house was illegal since I was never notified..Is this true, if I am never given the opportunity to save my house which are required by law and can I do anything about it now that it's been sold?
  • My house was sold at auction on May 28,2014 while i occupied it. I was away out of town and returned today. The locks have been changed and the mortgage co transfers me to the legal dept who wont give me any info on the sale. The county recorder has no info on the sale yet and the sheriff suggested i call landlord tenant line and they cant help because i am not a renter. They suggested legal aid. so here i am . 1 How do i get the things out of my house 2.who do i go to for help
  • Can a lender sue for a deficiancy balance(first mortgage only)on a townhouse or condominium? Does AZ33-814 prohibit the recovery of any balance due after trust property is sold pursuant to the trustee's power of sale, or the trust deed is foreclosed in the manner provided by law for the foreclosure of mortgages on real property.
  • Currently my home is not in foreclosure. I am behind in payments and the bank will not allow me to make partials. They are willing to reinstate the loan but I am unable to raise the 6 payments required. I have received default and letters of intent to accelerate. The bank is recommending a short sale. I want to work this out and I have saved 3 payments and I wish to stay in the home. We received a modification in 2012 and a special forbearance in 2013 I am back to work after being laid off in September and emergency surgery in December. Do I claim bankruptcy in order to save my home?

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  • State Bar of Arizona
    www.azbar.org
  • Maricopa County Bar
    www.maricopabar.org
    Referral number 602-257-4434
  • Pima County Bar
    www.pimacountybar.org
    Referral number 520-623-4625
  • National Domestic Violence Hotline
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ORGANIZATIONS

Documents

Horne Issues National Mortgage Settlement Consumer Alert to Arizonans ReadSpeaker

.pdf  AzMortgageResource.gov ReadSpeaker

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Loan Modification Frequently Asked Questions

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

Horne Issues National Mortgage Settlement Consumer Alert to Arizonans

WHAT IF I RENT A HOUSE THAT'S IN FORECLOSURE - The Protecting Tenants at Foreclosure Act

FORECLOSURE DEFICIENCIES IN ARIZONA: Will I still owe money after a foreclosure?

Where can I find legal help with a foreclosure?

Will bankruptcy save my home from foreclosure?

Did you know the Arizona Attorney General’s Office has a wide range of statewide assistance programs funded through the national mortgage settlement that could benefit you or people you know?

Mortgage Reaffirmation Requirements Bogus

Renting a Foreclosure

Recovering Excess Proceeds After Foreclosure of Your Home

Veterans Facing Foreclosure

LINKS

Arizona Housing Information

HUD in Arizona

Federal Consumer Action Handbook Online

Arizona 2-1-1

Pima County Courts Self Service Center

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