Harper Law Arizona

Liability to Second Mortgage After Foreclosure

Foreclosure remains a significant concern for many Arizonans.  One of the significant issues related to foreclosure law in Arizona is a borrower's potential liability to a second mortgage lender after foreclosure.  Check out our recent Arizona Property Law Blog post for further discussion of this issue:

Can My Second Mortgage Sue Me?

Change to Arizona Anti-Deficiency Law Repealed

Check out Harper Law's Arizona Real Estate Law Blog for our recent post discussing the fortunate repeal of SB 1271, which would have significantly changed Arizona’s anti-deficiency law, particularly in how it applies to investors.

Arizona Anti-Deficiency Law - SB 1271 Repealed

What Is A Loan Modification?

"Loan Modification" is a term thrown around a lot these days, but what exactly does the term mean?  Check out Harper Law's Arizona Loan Modification Law Blog for more information:

What Is An Arizona Loan Modification?

How To Compose A Hardship Letter

If you are working with a lender to try and obtain a loan modification on your home mortgage you'll likely have to draft a hardship letter explaining why you need the modification.  Check out our recent blog post for information about composing the hardship letter:

Composing The Hardship Letter For An Arizona Loan Modification Request

Arizona Homeowner Sued By Second Mortgage Lender After Foreclosure - Case Dismissed!

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:

If a mortgage is given to secure the payment of the balance of the purchase price, or to secure a loan to pay all or part of the purchase price…the lien of judgment in an action to foreclose such mortgage shall not extend to any other property of the judgment debtor, nor may general execution be issued against the judgment debtor to enforce such judgment, and if the proceeds of the mortgaged real property sold under special execution are insufficient to satisfy the judgment, the judgment may not otherwise be satisfied out of other property of the judgment debtor, notwithstanding any agreement to the contrary.

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)