Legal Question in Real Estate Law in Arizona

It look's like my wife and I may need to go into foreclosure.My income is from disability and my wife works for the national bank that picked up Countrywide's mortgages.After 21 year's at the same location she is now the manager of her branch,which started out as a different bank.If we get foreclosed,can her employer garnish her wages?Can they jeapordize her job?Our house is in a small historic town that really got hit hard by by the value downturn.We now owe probably 1/2 of the last appraisal.We have lived here 16 year's and did a lot of improvement's over the year's.And we also got a Title 1 loan 2 1/2 year's ago for the full amount of 25k.Need any good advice or comment's that we can get.


Asked on 7/21/11, 7:01 am

1 Answer from Attorneys
Scott Hyder Law Office of Scott W. Hyder, PLC

A lender can only sue you for a deficiency amount if it was for a loan not used to purchase the house. If you are talking about a loan you used to purchase the home, the only remedy the lender has is to take back the house via foreclosure. They can't sue you for any money and they can't garnish your wages.

If you are talking about a lender for some other type of loan (like a line of credit you took out on the home in order to pay other debts or make home improvements), that lender can sue you for the deficiency amount after foreclosure.

Take a look at the following blog article:

http://scotthyderlaw.com/the-arizona-anti-deficiency-statute-can-a-mortgage-lender-sue-you-for-a-deficiency-amount-after-a-foreclosure/

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Answered on 7/21/11, 9:14 am


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