Foreclosure
questions & answers
Question: Due to piling credit card debt and a recent diagnosis of cancer I may be headed towards foreclosure on my condominium. My question is if I cannot save my home will I be subject to any deficiency judgments against me because my residence is a condominium? I've read about if the property being less than 2.5 acres and a single family dwelling is safe from deficiency judgments. Do condos fall under the same protection? Is there anymore light you can shed on this situation for me?
Answer: Yes, condos fall under the anti-deficiency judgment statute as they are a residence on less than 2.5 acres. So as long as your loan(s) are purchase money--that is money obtained from the bank was used to buy the condo and not used for something else like paying credit card bills or buying personal items. The statue will also protect you if the lien holder forecloses on your condo via a trustee sale. Since that is mostly likely the case you are almost surely safe unless you have a 2nd mortgage that is a line of credit, sometimes called a HELOC, and you used the funds from the line of credit for purposes other than buying the house. If so and your 1st mortgage forecloses via a trustee sale you theoretically have exposure. However, even in that instance, it is unusual for a 2nd lien holder to sue individuals for the deficiency. The money spent to pursue the deficiency rarely justifies the return. If it does occur contact a lawyer right away and asses your options. Good luck.
QUESTIONS
-
Due to piling credit card debt and a recent diagnosis of cancer I may be headed towards foreclosure on my condominium. My question is if I cannot save my home will I be subject to any deficiency judgments against me because my residence is a condominium? I've read about if the property being less than 2.5 acres and a single family dwelling is safe from deficiency judgments. Do condos fall under the same protection? Is there anymore light you can shed on this situation for me?
STORIES
LegalLEARN
-
Free & Reduced Fees Legal Aid Resources
Click Here to apply online, or call
866-637-5341.
FIND LEGAL HELP
- Please select your county of residence below.
OTHER LEGAL RESOURCES
-
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
800-799-7233 -
Bankruptcy Court Self Help Center
866-553-0893 -
Certified Legal Document Preparer Program
Link
ORGANIZATIONS
- Pio Decimo Center
View full description - DNA- People's Legal Services - Window Rock
View full description - Southern Arizona Legal Aid, Inc.- Bisbee
View full description - Southern Arizona Legal Aid, Inc. – Whiteriver
View full description - Bankruptcy Hotline
View full description
Generic versions of the drug Cialis, sold as tadalafil, now available from many manufacturers.