Legal Question in Real Estate Law in Arizona

Legal consequences of home foreclosure

Dear sir,

I just lost my job and will be unable to pay my mortgage. I still owe approximately $140,000 on my house. If I stop paying my mortgage and let my house go on foreclosure, can the mortgage company sue me and go after my remaining assets such as savings or personal properties?

Also, after my first house forecloses and I am able to afford to buy a cheap fixer-upper house from my meager savings, will the mortgage company be able to stake a claim against it? Please advise. Thank you very much.

Mr. Garcia

Phoenix, AZ


Asked on 3/13/09, 5:27 pm

2 Answers from Attorneys
Gloria Meyer Meyer Law Office

Re: Legal consequences of home foreclosure

Depending on the circumstances, the lender might be able to go after your remaining assets. That said, if the loan was for money to purchase the property, the property was a single family residence, 2-1/2 acres or less, you did not refinance or mistate your income on the loan application, and you left the house in good condition, then the lender cannot go after you for the deficiency.

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Answered on 3/16/09, 1:28 pm
Donald Scher Donald T. Scher & Associates, P.C.

Re: Legal consequences of home foreclosure

Mr. Garcia,

You will not be personally liable for the mortgage loan if it is necessary for the lender to foreclose on your house. I hope that you may be able to qualify for a loan modification that may allow you to keep your house, if you want to do so.

Your current mortgage company cannot go after you for the loan balance, nor can they go after any assets that you acquire after the foreclosure. Find a TRUSTWORTHY mortgage broker who can explain to you all of your options and tell you about the new loan modification rules that are just coming out now.

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Answered on 3/13/09, 6:08 pm


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