questions & answers

Question: We had an 80/20 mortgage on our home. In Feb it was foreclosed on. The first lender shows as a foreclosure but the 2nd lender(chase) shows as a charge off. I was told that there is something in the state of AZ that requires both lenders to report it as a foreclosure. Is there a provision code that I can contact Chase with to have the reporting changed to Foreclosure? Thank you..

Answer:

Anti-deficiency statutes protect borrowers from having to pay the balance of their home loan that is secured by the property with a mortgage or deed of trust, provided they meet the requirements of the statutes. There are two anti-deficiency statutes in Arizona that preclude deficiency judgments: A.R.S. § 33-729(A) for judicial foreclosures, and A.R.S. § 33-814 (G) for trustee sales. The statutes are almost identical. To be eligible for protection, both statutes require the property to be 2 ½ acres or less and utilized as a one or two family dwelling. (Note: In cases where the home is not yet built but where the loan was obtained to purchase the property and build a house, the law has been interpreted to protect borrowers that intend to utilize the house as a one or two family dwelling). The distinction between the statutes is that for a judicial foreclosure, the anti-deficiency statute will only protect loans that are obtained to pay all or part of the purchase price of the property, sometimes referred to as a “purchase money loan.” • A.R.S. § 33-729(A): Anti-Deficiency Statute for Judicial Foreclosures o Property is 2 ½ acres or less o Utilized as a 1 or 2 family dwelling o AND the loan was secured to pay all or part of purchase price • A.R.S. § 33-814 (G) Anit-Deficiency Statute for Trustee Sales o Property is 2 ½ Acres o Utilized as a 1 or 2 Family Dwelling or more information about foreclosure view the “Foreclosure Article” http://azlawhelp.org/articles_info.cfm?mc=3&sc=20&articleid=40

 Find out more about foreclosure help here.