questions & answers

Question: House is being foreclosed on. There is a second mortgage involved. What is the statue of limitations for the second mortgage to file a deficiency law suit? Is it 90 days after the sale of trust of the 1st mortgage foreclosure? Or does it fall under the 6 year rule?

Answer:

You may want to consult directly with an attorney to find out how the law applies to your specific situation. The following is general information about mortgages.

In Arizona, the statutes that discuss mortgages and foreclosure are listed in Title 33 of the Arizona Revised Statutes (A.R.S.), beginning with A.R.S. § 33-701.

The question is whether a second mortgage was obtained for the purpose of purchasing the house, or whether it was part of a refinance or obtained after the purchase of the home. There is a debate on a rule of law regarding whether a second mortgage that was used to purchase a home can be sued on for a deficiency. Generally, if a second mortgage was not used to purchase the property, or a home equity line of credit, the mortgagee has six years (the statute of limitations on a written contract) in which to sue on the deficiency. However, this is general information. To find out how the law applies to your situation, you may want to consult directly with an attorney.