questions & answers

Question: Can a second (junior) mortgage Deed of trust lienholder obtain a deficiency judgment against me. The Arizona single family home foreclosed Trustee sale on September 2nd, 2014. They are just now trying to get a hold of me. There is no way I can even afford to pay. Thank you

Answer: The Arizona statutes dealing with foreclosure and deficiency on the mortgage or deed of trust used to purchase the property are Arizona Revised Statutes, Sections 33-729 and 33-814.  If yours was a straight-up foreclosure on your residence rather than a short sale or deed in lieu of foreclosure, the holder of the first mortgage probably can not come after you for the deficiency.  However, the holder of the second is a different matter.  Most second mortgages are lines of credit or loans using the equity in the home.  They do not qualify as "cash for property purchase" loans, and a judgment for the deficiency is allowed.  Judgments, in Arizona, expire after 5 years unless the lien holder renews the judgment. This is not a problem that can be solved in an online format.  It would be well worth your while to talk to a lawyer to help you figure out the best course of action.  There are three programs in Arizona that you can use to get some inexpensive legal advice and guidance.  One is the Modest Means Program.  You will need to apply for the program and meet the financial need qualifications.  Once qualified, Modest Means will send you a list of attorneys to choose from.  Then, for a $75 fee, you will receive a one hour consultation with the attorney.  If you need additional help and the attorney agrees to take your case, the fee charged will not be more than $75 per hour.  The telephone number is (866)  637-5341.  Both Maricopa and Pima County Bar Associations have Lawyer Referral programs that offer a 30 minute consult with an attorney.  Maricopa County's Lawyer referral Service offers a 30 minute consult with an experienced attorney for a fee of $40.  The telephone number is: (602) 257-4434.  Pima County Lawyer Referral Service offers a 30 minute consult with an experienced attorney for a fee of $35.  The telephone number is (520) 623-4625.  If you are unable to afford these modest fees, you can go to another portion of this website and apply to see if you meet the financial qualifications for a free lawyer.  Go to http://www.azlawhelp.org/accesstojustice.cfm