Deficiency Judgment in Arizona

April 4th, 2012 by Jarad

Question:  We have a deficiency judgement against us for a home we were building in Arizona. Can the bank garnish my wages and/or lien the house in which we reside. We do not want to file BK?

Answer:  – First off let’s clear up some misunderstanding on your deficiency judgment in Arizona. Arizona is actually a non deficiency state, however there are rules in order for the homeowner to apply the anti deficiency law. First is has to be a residential property on less than 2 1/2 acres. If you only have a first mortgage, chances are you may qualify. It’s the 2nd or HELOC that gives homeowners in Arizona all the problems. Usually a deficiency judgment in Arizona happens because of a HELOC since it is taken out after the 1st mortgage and it’s not a purchase money loan.

With this in mind, you need to determine what your situation is and if they have grounds to file a judgment against you based on what you’ve just read. If they can file a judgment against you than it’s best to try and work something out with the lender if you can. Usually you can make them an offer to pay it off in full or work out a payment plan. A lot of times homeowners don’t have a choice but to file bankruptcy because the lender simply won’t work with them and they can’t afford the payments or lump sum. But definitely try to settle with them if you can. If you do nothing, yes, they can garnish wages if it gets to that point.

Tags: , ,

One Response to “Deficiency Judgment in Arizona”

  1. Kevin Says:

    Any news on this?

Leave a Reply

Ask The Expert?

Have a question that hasn't been answered? Ask us a question by clicking here.

Search Blog

Featured Product

foreclosure home study course
"The Investors Complete Foreclosure Home Study Course - Only $47"

Discover a Proven System for Buying Real Estate Foreclosures 30%, 40%, and 50% Below Market Value. Generate Huge Returns Using This Step-by-Step Foreclosure System.

Learn More - Click Here

Build Your Wealth

See our investment properties

Looking for Great Returns and Positive Cashflow? Build your wealth by investing in real estate.

Check out our inventory! »

Free Foreclosure Reports

Affiliate Disclosure

We review products from time to time and receive compensation from the companies whose products we review. We review each product thoroughly and give high marks to only the very best. We are independently owned and the opinions expressed here are our own...

Comodo SSL