Arizona homeowners who have lost their home to foreclosure should contact an Arizona real estate attorney immediately if any creditor attempts to collect on a debt secured by the foreclosed property. Lenders may attempt to collect on these debts when they have no legal right to do so. Because all situations are different, all casualties of foreclosure should obtain an analysis of their potential liabilities as soon as possible.
Phoenix, AZ (PRWEB) May 9, 2009 -- Arizona homeowners who have lost their home to foreclosure should contact an Arizona real estate attorney immediately if any creditor attempts to collect on a debt secured by the foreclosed property. These debts may include second and third mortgages or home equity loans or lines of credit. Often these lenders will attempt to collect on these debts when they have no legal right to do so.
In a foreclosure proceeding, the first mortgage is given preference over the subordinate or subsequent mortgages. In today's Arizona home market this process frequently leaves subordinate mortgages entirely unpaid after a foreclosure. Understandably, these lenders are pursuing all means possible to recover their losses, but oftentimes they have no legal recourse.
Recently, Arizona Attorney Kevin Harper 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 money the homeowner used to purchase the house in 2006. Mr. Harper filed a Motion to Dismiss the lender's lawsuit pursuant to A.R.S. § 33-729(A), which states that a lender is barred from pursuing any action against a borrower if the mortgage was obtained to purchase the home. After receiving Harper Law's Motion to Dismiss, the lender realized the futility of its action and immediately offered to dismiss the case and pay the client's attorneys' fees.
Although this and other statutes may preclude some actions by lenders post-foreclosure, in some instances lenders are entitled to obtain a deficiency judgment. There are strict rules and time limitations, however, governing such actions. Because every situation is different, Mr. Harper counsels any casualties of foreclosure to contact an experienced Arizona real estate attorney right away to obtain an analysis of their potential liabilities.
About Harper Law PLC - Harper Law is an Arizona law firm helping individuals and businesses from throughout Arizona resolve disputes since 2004. The Firm's practice focuses on real estate, business, and employment litigation with experience handling a wide variety of civil litigation matters. Individuals interested in obtaining more information or scheduling consultation with Harper Law should call 602-256-6400 or visit the Firm's websites at www.HarperLawArizona.com and www.ArizonaPropertyLaw.com.
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2 comments:
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