Legal Question in Real Estate Law in Arizona

You can move, but it is advisable to try to maintain good relations with the bank. A viable alternative often is a short sale. Call me for more information.

If you can nolonger make the mortgage payments, you can remain in the house without making the payments and wait for the foreclosure process to take its course. The lender may be happy for you to stay there and maintain the property and keep it from being vandalized, as many vacant homes have been damaged. You can also attempt to find a buyer and conduct a short sale, where the lender agrees to accept less than the balance of the mortgage owed. You can also give the lender ownership by deeding your ownship to the lender, that is often referred to as a deed in lieu of foreclosure. With any of the alternatives, you want to be careful that you do not agree to be liable for any deficiency, so long as you meet the legal requirements set by the AZ anti-deficiency statutes.

If you have not intentionally damaged the property or taken fixtures, appliances or equipment that belongs with the house, you should not be liable for any damages. The same would be true with regard to maintenance or repairs that you know are needed, because you are not required to make those repairs, etc.

If you just walk away, as many people have done, without notice to the bank, I doubt that it would give them any more incentive to go after you for money. It is generally a good idea, if you just want to leave and take your belongings and personal property, that you do so and notify the bank that you have left the premises and send them the keys.

You should consult with counsel and determine which is the best alternative for you to follow. You do not have to run up a large bill for legal fees, a one hour consultation would probably give you the information that you need to make a good decision.