questions & answers
Question: Mt mother is in an assisted living home. Her retirement income and social security combined barely cover those costs. If she defaults on her mortgage can her retirement income be garnished?
If the mortgage is a purchase money mortgage (compared to a equity lne of credit), and the property is a single or 2-family residence (it does not matter if it is her primary residence or an investment residential property) on less than 2.5 acres of property in Arizona, she should not be liable/responsible for the deficiency because of Arizona's anti-deficiency statute. If the mortgage is not a purhcase money mortgage, she may be liable for a deficiency. If so, as a general rule, properly qualified retirement plans are not subject to garnishhments from judgment liens.
Because of the complexity of property rights, you may want to contact an attorney. An attorney can review the retirement plan, mortgage and deed of trust. To find an attorney you may want to look at some of the resources available through the organizations list on this website. Additionally, you may want to contact the Maricopa County Lawyer Referral Line, the Pima County Law Referral Line or the State Bar of Arizona Find a Lawyer Website to see if an attorney can help you.
Mt mother is in an assisted living home. Her retirement income and social security combined barely cover those costs. If she defaults on her mortgage can her retirement income be garnished?
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