Lender Collection Efforts on HELOC’s and Junior Debt in Arizona
A recent story in the New York Times explored whether borrowers electing to walk away from their homes are facing lawsuits and collection efforts by the holders of junior loans on residential property. See the article at http://www.nytimes.com/2010/08/12/business/12debt.html or the attached pdf debts-rise-and-go-unpaid-as-bust-erodes-home-equity-nyt The Reporter, David Streitfeld, spoke with me and several other attorneys, to gauge [...]
BORROWER’S 1, LENDER’S 0
In a recent case handled by local business and real estate attorney Lance Davidson, a borrower prevailed in a lawsuit brought by the borrower’s lender seeking a deficiency after the borrower sold the home at a short sale. In the lender’s approval letter, the lender included a clause that stated it reserved their rights to pursue a deficiency following [...]
COMMON MYTHS ABOUT ARIZONA FORECLOSURES AND SHORT SALES
Over the past 18 + months of advising owners of distressed property, several common myths have emerged regarding foreclosures and short sales in Arizona. Here is a list of common myths. 1. Only purchase money loans on qualifying residential property get anti-deficiency protection in Arizona. This is not necessarily true. If the holder of a mortgage secured by a single 1 [...]
THE TRUTH ABOUT SHORT SALES AND DEFICENCIES IN ARIZONA
Rarely will a consumer find so much contradicting, confusing and downright incorrect information on a legal topic as they currently do when it comes to short sales and related issues. Rarely heard of just 2-3 years ago, short sales now make up a significant majority of current MLS listings in the metro Phoenix market and [...]
SHORT SALE TIPS FOR ARIZONA RESIDENTIAL PROPERTIES
1. Know what leverage you have, if any. If Arizona’s anti-deficiency statutes apply to your loan(s), use this fact to reject any lender demand for a seller/borrower contribution at close of escrow. Most junior lenders will ask for a contribution from the borrower, sometimes a significant one. If the loan is covered by Arizona’s anti-deficiency [...]
UPDATE ON ARIZONA’S ANTI-DEFICIENCY STATUTE
The Arizona legislature passed, and Governor Brewer signed into law on November 23, 2009, Senate Bill 1004 which returns Arizona’s trustee’s sale statute anti-deficiency clause to its form prior to passage of Senate Bill 1271. The Bill includes a retroactivity clause, making the change retroactive to September 30, 2009, the day SB 1271 had gone [...]