Posted on: 18th Dec, 2009 08:21 pm
My husband and I own 2 homes. We were forced to leave Phoenix and relocate because of a job. We purchased a home in Virginia where we now live. The home is Phoenix is upside down by $150,000 and we cant even keep it rented. We cannot continue to pay 2 mortages and we want to forclose on the Phoenix home. Is Arizona a no recourse state? Can they come after the home we live in in VA.? Can they garnish my husbands wages? WIll our credit cards go sky high on interest? They are all closed and we no longer use them.
Thanks for helping, I'm having such a hard time finding answers.
Thanks for helping, I'm having such a hard time finding answers.
Hi tjdhoff!
Welcome to forums!
Arizona is a non-recourse state. In this state, the lender will not be able to sue you for the deficient amount resulting from the foreclosure sale of the property. Thus, your lender will not garnish your husband's wages or place a lien on your property. I don't think your credit cards would be affected much as you've already closed them.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Arizona is a non-recourse state. In this state, the lender will not be able to sue you for the deficient amount resulting from the foreclosure sale of the property. Thus, your lender will not garnish your husband's wages or place a lien on your property. I don't think your credit cards would be affected much as you've already closed them.
Feel free to ask if you've further queries.
Sussane
If I let the home I own in Az go into forclosure and because of a job transfer we have not lived there for a year and a half will I still qualify for the no recourse law as it was originally my primary residence?
it's curious that you'd be concerned about high rates on credit cards that you don't use. remember, when your balance is zero it doesn't matter what the rate is. in that case, 30% annually is the same as 1% annually.
What about the same scenario but instead of AZ (location of the second home) it is in Michigan?
My parents lived in California and bought a house in Iowa a while ago because they were planning to move to Iowa and retired but the economy keeps getting worse and worse and they cannot find a renter for the house in Iowa and can't let go of the house in California, so they have decided to let go of the house in Iowa. The house has a second loan on it. (They got approved for the 80/20 loan to avoid the MPI) now that they stopped paying for the house the lender for the second loan(BOA which is also the lender for the 1st loan) they are asking my parents to pay. When the house does goes into forclosure, will that clear us from the second loan also? Also, is Iowa a non-recourse state? And since they live in CA would they have to follow the foreclosure law of Iowa or California? Please help! Thank you and God Bless.
Hi tvida,
As far as I know, Michigan is a recourse state. Thus, the lender can sue you for the deficient amount resulting from the sale of the property.
Hi Patricia,
In most of cases, the second lender is unable to recover his dues from the foreclosure sale. In that case, the borrower remains liable to pay off the dues or else the lender may garnish wages or place lien on any other property. As the property is located in Iowa, you will have to follow the foreclosure laws of that state. Iowa is a non-recourse state.
Thanks
As far as I know, Michigan is a recourse state. Thus, the lender can sue you for the deficient amount resulting from the sale of the property.
Hi Patricia,
In most of cases, the second lender is unable to recover his dues from the foreclosure sale. In that case, the borrower remains liable to pay off the dues or else the lender may garnish wages or place lien on any other property. As the property is located in Iowa, you will have to follow the foreclosure laws of that state. Iowa is a non-recourse state.
Thanks
is arizona non recourse, if i do grand deed in lieu of foreclosure. will bank after the deficient amount? i live in california :( sad}
Hi steve,
Arizona is a non-recourse state. You should note that in case of a deed in lieu of foreclosure, the lender always forgives the deficient amount. You'll not be liable for the balance amount.
Arizona is a non-recourse state. You should note that in case of a deed in lieu of foreclosure, the lender always forgives the deficient amount. You'll not be liable for the balance amount.
When my son became disable, rather than him losing his home in Mesa, AZ, I purchased it so that he and my two grandsons would have a roof over their heads. I also own a home in Tucson, AZ. Since purchasing the home in Mesa, the bottom fell out of the housing market and now the Mesa home is worth about many thousand less than I owe. Can I utilize the Non-recourse law to let the Mesa home go back to the lender without losing my other home and savings??
Thank You.
Thank You.
Does a home have to be owner occupied? if so, for how long? in order to utilize non-recourse in foreclosing in Arizona? Thank You
Hi Paul,
I would suggest you to apply for a deed in lieu of foreclosure rather than letting the property go into foreclosure. Depending upon your financial situation, if the lender agrees for a deed in lieu, you won't be liable to pay off the deficient amount resulting from the property sale. Thus, the lender won't come after your other property.
BTW, I don't think Arizona is a non-recourse state. If the property goes through a foreclosure, the lender would be able to sue you for the deficient balance.
Thanks
I would suggest you to apply for a deed in lieu of foreclosure rather than letting the property go into foreclosure. Depending upon your financial situation, if the lender agrees for a deed in lieu, you won't be liable to pay off the deficient amount resulting from the property sale. Thus, the lender won't come after your other property.
BTW, I don't think Arizona is a non-recourse state. If the property goes through a foreclosure, the lender would be able to sue you for the deficient balance.
Thanks
James,
Thanks for the info. I will check further into a "Deed in lieu of foreclosure." I had never heard of that process before now. I checked several sources and Arizona is a non-recourse state.
Thanks for the info. I will check further into a "Deed in lieu of foreclosure." I had never heard of that process before now. I checked several sources and Arizona is a non-recourse state.
Deed in Lieu sounds like a great option for most [people facing foreclosure, but I'm a little confused as to why a lender would accept a deed in lieu?
a deed in lieu of foreclosure allows the lender to avoid the annoying and expensive process of taking the entire route to foreclosure. it is far cheaper than continuing to pay court costs, attorneys fees and advertising fees that they otherwise might never recover.