questions & answers

Question: In 07-09-2012 my home was foreclosed and sold. because of lost job and bad health, I could not make payments. I had a 80/20 loan. I have read info on the Anti- Deficiency (ARS 33-814). My question is do I owe on the 20 percent lone? I have not heard from that lender?

Answer:

It is unclear from the question what is meant by 20 percent loan.  If the money borrowed was used for the purchase of the home, the home was intended to be the residence, and the property meets the size requirements of the anti-deficiency statute then the lender may not legally pursue the borrower for any amount owed not covered by the sale of the property.  (See Anti-Deficiency Article)

Individuals dealing with issues related to a foreclosure can apply for free and reduced fee legal services through the Access to Justice Online Intake System, the link is also available on the top right of AZLawHelp under the “LegalLEARN” section. Individuals may also contact legal aid directly, however due to high call volume there may be long wait times on the phone and the phone system may disconnect calls when overwhelmed. To find the legal aid agency serving a particular county in Arizona, select the desired county in the drop-down under the section titled “FIND FREE LEGAL HELP” on the right column of AZLawHelp.