Legal Question in Real Estate Law in Arizona

Second Mortgage
In February 2004 our home in Arizona was foreclosed on. We had a second for 20000, which was 19000 when the first was foreclosed upon. There was an auction, and the home was purchased for less than what was owed, but the VA picked up the balance on the first. We didn't hear anything from Homecomings Financial and they didn't collect any monies from the sale.

HF sold the second to another real estate (collection) company in June-July 2006. They say I have to pay the the original amount and add 12000 for interest, but may or may not settle for less. Can they attach this debt to my home in California? And what are thier rights to be paid, and our right to pay over time.

Asked on 12/07/06, 12:35 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

0 users found helpful

0 attorneys agreed

Re: Second Mortgage

Part of your question relates to California law, so I'll try to answer that for you.

If the creditor obtains an Arizona judgment against you - and I express no opinion as to whether this can happen or not - they will have some additional steps to take to enforce it against your California property.

The creditor would apply to the California Superior Court in the county where you reside for entry of the judgment as a a so-called "sister state judgment." If the application is facially proper and has been served on you in the same manner as a summons and complaint, the court will cause the Arizona judgment to be entered.

At that point, it can be enforced as though it were an original California judgment. The creditor will then record one or more abstracts of judgment, which becomes a lien against any real property you own in any California county in which such an abstract is recorded.

Then, the creditor could choose to negotiate with you for a settlement, or begin procedures to enforce its judgment lien, or simply wait until you sold or refinanced a property, at which point the lien would have to be satisfied from the proceeds of the loan or sale.

Answered on 12/07/06, 1:34 pm

Mark as helpful