questions & answers

Question: I owned a house in 2005- when everything boomed it was way overpriced and there was a 1st and a 2nd. I went through a divorce and lost the home as it was upside down. It went into foresclosure and I never heard another word. This now 2019 and I received a letter in the mail saying the 2nd mortgage wants to settle with me for $5000 on a $92,000 note from that house- that was 13 years ago! Can they even do that? My house was upside down and then foreclosed on and sold.

Answer: While the holders of a first mortgage cannot go after you for a deficiency, that is not true of a second mortgage.  That said, there are a bunch of unanswered questions here.  Has the statute of limitations on the debt already run?  Have they filed an action and received a judgment against you on the debt?  It may be possible they want to settle for such a modes sum because the time limit on the debt has expired.  You would benefit from taking the letter and any other documents you have.  There are three programs in Arizona that you can use to get inexpensive legal advice and guidance.  One is the modest means program.  You wil need to apply for the program and meet the financial qualifications.  Once you are qualified, Modest Means will send you a list of attorneys whose practice covers your area of concern.  You select a lawyer from the list and will be entitled to a one hour consultation for $75.  If you need additional help and if the lawyer agrees to take your case, the most you will be charged is  $75 per  hour.  The telephone number is (866) 637-5341.  Both Maricopa and Pima Counties have lawyer referral programs that offer a 30 minute consult with an attorney.  Maricopa County's Lawyer Referral Service offers its 30 minute consult with an experienced attorney for $40.  The telephone number is (602) 257-4434.  Pima County's Lawyer Referral Service offers a 30 minute attorney consult for $35.  The telephone number is (520) 623-4625.