Foreclosure

questions & answers

Question: Does the anti-deficiency statute cover for a an 80/20 loan where the 1st mortgage was refinanced (no cash out)under HARP 2.0? Refinanced only for lower interest rate/payment.

Answer: As to the 80% loan assuming it replaced a purchase money mortgage (used to purchase the property), is not a VA loan, and otherwise meets Arizona's anti-deficiency statute (A.R.S. 33-729), the current case law protects it under the anti-deficiency statute (see http://www.azcourts.gov/Portals/89/opinionfiles/CV/CV100418.pdf). The 20% loan may be a HELOC (home equity line of credit) and there are other factors that come into play. As such, there is no short answer there. Here is a good article by some attorneys at my old firm that addresses some of the questions you raise: http://www.sackstierney.com/articles/antideficiency2.htm Since you are not my client, and I do not know all of the specifics of your circumstances, I cannot provide legal advice, only guidance. I wish you the best.