Harper Law recently represented a homeowner who lost her home to foreclosure in late 2008. The lender on the homeowner's second mortgage filed a lawsuit to recover over $40,000 it alleged was owed on the second mortgage, which was a purchase money mortgage used to buy the house in 2006.
Our Arizona real estate lawyers filed a Motion to Dismiss the lender's lawsuit pursuant to A.R.S. § 33-729(A), which states:
The legal effect of this statute is that a lender is barred from pursuing any action against a borrower if the mortgage secured by a deed of trust was obtained to purchase the home. After receiving Harper Law's Motion to Dismiss in this case, the lender realized the futility of its action and immediately offered to dismiss the case and pay the client's attorneys' fees.
If you've been sued by a lender, please schedule a consultation with an Arizona real estate attorney to determine whether you might be protected by this or another applicable law.
(CB09)