The Arizona Anti-Deficiency Statute: Can a mortgage lender sue you after a foreclosure has occurred?

Article by Scott Hyder

The Arizona Anti-Deficiency Statute: Can a mortgage lender sue you after a foreclosure has occurred? – Law

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A common question from potential clients is whether a mortgage lender can sue for any deficiency amount owing after a foreclosure. It is imperative for a person facing any foreclosure to consult with a competent Arizona real estate lawyer, Arizona foreclosure lawyer or Arizona bankruptcy lawyer to determine the correct analysis to this scenario.

Arizona Anti-Deficiency Statute

Under Arizona law, if you took out a mortgage used to purchase a residence on 2 1/2 acres or less that has been lived in (either by yourself or another person, such as a renter) and a foreclosure occurs, the lender generally cannot sue youfor any deficiency amount. For example, if you took out a $ 100,000 mortgage used to purchase your home and the house is only worth $ 70,000 at the time of foreclosure, the lender is prohibited under Arizona law to sue you for the $ 30,000 difference.

This is not necessarily the case for other types of mortgages, such as home equity lines of credit (HELOCs). If you tapped into your home’s equity a few years back (do you remember the days when our homes actually had equity?) and used the money to pay off debt or remodel your home, that lender can sue you for the difference after the foreclosure occurs. For example, if you have a first mortgage for $ 100,000 used to purchase the house, a second HELOC mortgage for $ 50,000, and the house is worth $ 70,000 when the foreclosure took place, the first lender received the entire $ 70,000 because it was in first position. That first lender cannot sue you for the $ 30,000 deficiency you owe because the $ 100,000 loan was used to purchase the house and the Arizona anti-deficiency applies. However, the second lender, which received none of the $ 70,000 because it was in second position, can sue you for the entire $ 50,000 because that money was not used to purchase the house.

Remember that the anti-deficiency statute only applies with residential mortgages. If you took out a loan for $ 500,000 to purchase commercial property or vacant land and your property was worth $ 400,000 when the foreclosure occurred, the lender can sue you for the $ 100,000 deficiency because the anti-deficiency statute does not apply to non-residential loans.

Refinanced Loans

What if you took out a mortgage for $ 100,000 at 10% to purchase your home but later refinanced it with a different lender for the same amount at 5% interest? Do you still have protection under the anti-deficiency statute? Yes. What if you took out a $ 100,000 loan, but later refinanced it for $ 150,000, tapping into some of your home’s equity? Does the anti-deficiency statute apply? Maybe. Some older cases have held that the anti-deficiency statute may apply under these circumstances, but such cases were very specific to the set of facts posed to the court. The Arizona Court of Appeals is currently looking at such issues.

Defenses

If you talk to a competent Arizona bankruptcy lawyer, the number one defense against any lawsuit where the anti-deficiency statute does not apply is to file a bankruptcy. That will relieve you from liability. However, you may be able to assert a “statute of limitations” defense in lieu of filing bankruptcy. Generally speaking, a mortgage lender that forecloses on your property has 90 days after the foreclosure to sue you for any deficiency amount (assuming the anti-deficiency statute does not apply). A lender in second position (i.e., a HELOC lender) does not have to comply with such 90 day period if that lender was not the lender that initiated the foreclosure. That lender can sue you, usually within 6 years after you defaulted on that loan.

For more information, please visit http://scotthyderlaw.com/

About the Author

Scott Hyder is a licensed Arizona attorney practicing in the areas of bankruptcy, real estate, estate planning and business transactions. Please visit http://scotthyderlaw.com/ for more information.

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New York, NY (PRWEB) May 14, 2012

Michael Lombardi, lead contributor to Profit Confidential, believes that the homeownership rate will continue to drop in the coming years and that the ideas that the housing market has bottomed and that foreclosures are a thing of the past are simple fallacies.

More people are deciding to rent instead of buy in the U.S. housing market, says Lombardi.

In the article U.S. Housing Market Far From a Bottom, Lombardi outlines several reasons behind his thesis.

Banks are not lending out to people, mortgages are hard to get, says Lombardi. Secondly, real disposable incomes are not rising at all for people to justify entering the housing market. Lombardi believes the average American is not feeling wealthy; they feel they are just getting by.

A third reason is that the record $ 1.0 trillion in student loans will restrict many first-time home buyers from getting a mortgage, because they already have too much debt, says Lombardi.

Another good reason according to Lombardi is that people are deciding to rent. Like the stock market, after people have been burned or have family members and friends that have been burned by stocks, one tends to stay away from the stock market in general. The housing market is no different.

Lombardi also highlights that the foreclosures rate in the U.S. still remains very high. Estimates for the number of homes in foreclosure are approximately 5.6 million, says Lombardi. Home foreclosures should continue to rise in 2012.

Lombardi says this means that more empty homes will enter the housing market, further putting pressure on home prices.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $ 300 an ounce. In 2006, it begged its readers to get out of the housing market… before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporations free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardis current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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Buying Real Estate Tax Liens

Article by Don Cramer

When somebody owns real estate, they are going to be responsible for paying taxes to various government agencies. If they are unable to pay these taxes, the government will place a lien against the property in order to ensure that they are able to get their money. What many people don’t realize, however, is that the government is not interested in waiting for their money because they need it in order to make sure that they are able to reach their budget goals. This is where you come in, and it is possible for you to make a considerable amount of money for yourself by buying real estate tax liens.

The first step in this process is to find the real estate tax liens that are available in the first place. Most counties in almost every state in the United States are going to have these tax liens that are available, particularly now that individuals are having a difficult time financially. If you happen to find a county where these liens are not available, simply move on to an adjacent county and you’re sure to find a list where you can begin.

Most of these tax liens are going to be sold, but not all of them are going to pay off in the long run. In order for you to make the most when buying real estate tax liens, you need to find a property where the amount that is owed on the property is much less than the amount that the property is worth. In that way, the individuals will either eventually pay the lien, and you will recoup your money with interest or you will end up owning the property and making a profit on the sale. This is a great way to invest in real estate. For more info go to: http://www.bestchoicerealty.net/special_offers/taxliensmadeeasy.htm

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New York, NY (PRWEB) May 12, 2012

RoadFish.com mens lifestyle and finance magazine today noted that a recent study showed that bonuses for Londons workers in the financial arenas will be divided nearly in half this year, falling to 2.3 billion pounds from 4.4 billion, at the same time last year. RoadFish.com could not help but look to American history and draw the comparison to the Wall Street bailout and bonus debacle back in 2009.

While there is no mention about bonuses for other occupations in London, leaving one to assume that there is not much to report for doctors, estate agents, and teachers, something drastic is reportedly happening with the financial workers bonuses this year. Reuters reports that bankers and other employees of financial businesses around the city of London will receive a dramatic cut in their bonuses this year, reportedly nearly a 50% reduction from what they received last year. Reuters states that bonuses will fall to their lowest level in more than a full decade. The exact number reported for the estimated 2012 bonuses is 2.3 billion pounds (or roughly $ 3.7 billion US dollars,) down from the 4.4 billion pounds ($ 7 billion US) handed out last year at the same time. It was explained that banks usually pay bonuses in the new year instead of the traditional quarter in which they were actually earned. In the article, the Centre for Economics and Business Research (CEBR) is quoted as saying the cause is partially due to the repercussions of bankers pay.

In 2008, taxpayer-backed bailouts were made for banks around Great Britain, not unlike the Wall Street bailout in the US in 2008. RoadFish.com drew similarities to the two events, but pointed out that there was much more backlash over the increase in bonuses handed out to American Wall Street bankers after the bailout. RoadFish.coms Senior staff writer is quoted as saying, That was a huge issue, a personal issue for taxpayers a few years ago. The Wall Street Bailout came straight out of American taxpayers pockets, and in 2009 and even 2010, banks were still handing out billions of dollars in bonuses. Unemployment was horrifically high and house foreclosures were through the roof at that point, and I know that a lot of people were furious about the bonuses. Perhaps London learned from Wall Streets mistake.

LondonLovesBusiness.com reported that the bonus cuts are a direct reflection of collapses in the banking business, and an abrupt decrease in financial services jobs. The article reports that the CEBRs chief executive, Douglas McWilliams, is quoted as saying, City remuneration levels are coming back into the real world. Employees are being told, Your job is your bonus so dont expect a large sum in addition. He stated that bonuses are no longer the rule, but rather the exception. The article goes on to report that according to shareholder group Manifests recent report, the payroll for the average London chief executive is around 400,000 pounds (approximately $ 640,000 US dollars.) And that number does not include all the perks that come with the position.

RoRoadFish.com believes that a modest dip in the bonuses of bigwigs could bring them down to the level of the typical taxpayer. RoadFish.coms Senior staff writer is quoted saying, We are still dealing with the Occupy Wall Street movement, which began last year but the issues that sparked the action have been building for years. People were outraged by the huge bonuses that fat-cat Wall Street bankers received after the bailout. The UK should do well to avoid such issues by wisely cutting financial bonuses.

The above-mentioned LondonLovesBusiness.com article includes another quote from McWilliams, warning the public that huge bonus cuts are not necessarily a cause for celebration from taxpayers. McWilliams is quoted saying, Before anti-City campaigners start jumping for joy, they should reflect on the fact that because City earnings are very highly taxed, the biggest loser of all will be the Treasury, meaning fewer funds available to finance public services. City bonuses have been a major cause of debate since bank bailouts were made in London 2008, out of taxpayers wallets.

About RoadFish

RoadFish.com is an online men’s lifestyle and finance magazine targeted toward men in their 30s and 40s that have already attained a moderate level of success in life, and are striving toward more. It goes over current events of interest to this group, such things as exciting adventures, making money, consumer interests, and hot chicks as well as ways to make more and save more money. It is a publication owned by Purpose Inc.

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Atlanta, GA (PRWEB) May 12, 2012

Integrating the functionality in these two systems is what Commercial Real Estate Agencies need to generate more business in less time, says DJ Wight (President of RLT). Automated tools and standardized processes is the end product that is being delivered by RLT and ESS to the Commercial Real Estate Industry. This includes: Automated fliers, blast email templates w/tracking capabilities, lease tracking with critical date reminders, and an automated reporting engine for landlords and investors are just some of the functionality being delivered.

Having a tool that will allow you to easily reach thousands of tenants, track what youre doing, provide reports to your clients, and handle business critical functionality like lease tracking and critical date reminders is what every business needs, and having that in one application makes it that much easier, adds David Boemecke. (President of ESS) The new software is expected to launch around the time of the ICSC RECon 2012.

About Enterprise Software Systems:

ESS custom development services revolve around a service-oriented architecture, using .NET and other Microsoft technologies to create solutions that address your business needs and technical requirements. With expertise and resources in the primary development environments, ESS can build or modify your mission-critical applications to ensure reliable delivery of the services a business needs to compete in todays marketplace. Visit Enterprise Software Systems at http://www.esssoftware.com

About RLT:

Retail Lease Trac offers the most accurate retail tenant information service in the commercial real estate industry. RLT is a subscription based service, with many customers re-subscribing every year for more than 10 years. Clients purchase an account giving them access to the data and services from anywhere they have internet access. With the help of RLT, commercial real estate executives, commercial and community developers, economic developments, Chambers of Commerce, and University systems are able to locate retailers seeking expansion in their area. Clients can easily contact the retailers leasing representatives by phone, fax, or email. Visit Retail Lease Trac at http://www.rltrac.com or Visit us a booth 400 for the Recon Show in Vegas!

This was submitted by Click Ready Marketing an Atlanta Search Marketing Agency.

The ABC’s of Real Estate Taxes

Article by Caitlina Fuller

Many people think about buying and selling property without thinking about real estate taxes. Before you buy property you should be sure that you look into the taxes. Depending on where you live, your taxes may be very low, very high, or somewhere in the middle. Every homeowner will pay different amounts of real estate taxes because they are based on the actual value of your home.

When you buy property you can expect to pay property taxes, you may pay taxes for the development that you live in, and you will probably pay school taxes. All of these taxes can range from a couple hundred to a couple thousand dollars each year based on the percentage of tax that you pay on the value of your home as well as on the worth of your home. For instance, you are going to pay more tax if you have a million dollar home when you live in the same area as someone who has a home that is worth $ 115,000 home. When you buy property you have to consider taxes as they will affect whether or not you can afford any given home.

If you want to sell property you need to take into consideration who will be able to afford the taxes. Many individuals that are selling their homes have to reduce the actual price of the home to accommodate for the fact that the real estate taxes in their area are so high. This is a drawback of living in an area where property taxes are very high. It can be hard to sell house when a seller wants to get top dollar for their home when they live in a high tax area, and generally the homeowner will have to drop the price or wait for the right buyer to come along, and in a buyer’s market this can take quite awhile!

If you are thinking of buying a house and you are afraid of how you will afford your real estate taxes each year, you should consider that your taxes can be paid out all year long. Most home buyers choose to have money put into an escrow all year long so that they don’t have to come up with a lump sum of money at the end of the year. Instead a dollar amount is added to your mortgage payment each month and that money is set aside in the escrow account. This money is then saved until tax time and the escrow management company pays out the taxes when the time comes, making it more affordable for you to pay your taxes and afford your home.

Home loan professional Rob Spinosa of www.themortgagedictionary.com answers the most common questions about California real estate taxes, as they relate to the home loan process. This short video answers three main questions; “When are my real estate taxes due?”, “How do I pay my real estate taxes?”, and “How does payment of property tax affect the mortgage process?” We will also cover the due dates for CA real estate tax (November 1 and February 1), and the delinquent dates (December 10 and April 10). The topics of escrow or impound accounts are explained, as are supplemental tax bills, proration of taxes, adjusted tax basis and settlement charges related to payment of property tax installments. For more information or to begin the pre-approval process, contact Rob Spinosa at rspinosa@rpm-mtg.com or by phone at 877-270-5959. Rob is a mortgage banker at RPM Mortgage in Mill Valley, California, just north of San Francisco. He is able to assist anyone in the state of CA, and can be found on social media platforms as below: www.facebook.com www.twitter.com www.linkedin.com

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Jacksonville, Florida (PRWEB) April 22, 2012

Florida foreclosure and short sale experts have the unfortunate task of viewing the face of foreclosure from the ground level. The process to stop foreclosure is complicated and some homeowners face challenges that other homeowners do not face during foreclosure. Traditional ways that a homeowner could explore to avoid foreclosure included filing bankruptcy or hiring an attorney that could use legal blockades to slow the foreclosure process. AvoidForeclosure.com, the online foreclosure help center, announces that its programs are now nationwide. New options are available for homeowners to avoid bankruptcy apart from bankruptcy or hiring attorneys. These national programs are now available in every U.S. state and are a combined effort of over three years of research and development.

The news media has reported the high number of foreclosures in U.S. states like Arizona, Michigan and Florida. These states are some of the hardest hit since the real estate market slowdown in 2008. The Obama Administration has focused efforts to help homeowners struggling with foreclosure, but no new federal assistance has been approved by Congress. Some homeowners facing foreclosure are searching for alternative ways to stay in their homes and avoid the sale of their property. The impact of foreclosure is devastating to families and individuals in many states, said Joe Kern, Housing Consultant for AvoidForeclosure.com. The statistics are reported daily by the news media, but we get to read personal emails and requests for help from desperate homeowners everyday, Kern added.

Some banks and mortgage lenders stop negotiations and loan modification requests after a certain length of time has passed. Proving financial hardship has been one of the challenges that some homeowners have faced when fighting to avoid foreclosure. In many U.S. states, the process of foreclosure is judicial and requires court approval before foreclosure can be started. New programs that are available from AvoidForeclosure.com could help a homeowner stop their home from being sold by a mortgage lender. Certain options are right for certain people, said Megan Marcum, Foreclosure Specialist at AvoidForeclosure.com. There is variety in the selection process now and homeowners might not have to declare bankruptcy, added Marcum.

As the federal government overhauls its foreclosure assistance programs, the homeowners that are facing foreclosure within the next three to six months could find that federal assistance will arrive too late to make a difference. A typical foreclosure is completed in 180 days or less after public notice is made. The qualified specialists that speak directly to homeowners at AvoidForeclosure.com know the struggles that are experienced during the fight to save a home from foreclosure. The national expansion of the announced foreclosure programs have been designed to offer the chance for a way out of foreclosure by avoiding traditional methods like forbearance and loan modifications. 

About AvoidForeclosure.com

Since the spring of 2010, AvoidForeclosure.com has provided assistance for homeowners facing foreclosure in the state of Florida. A group with backgrounds in real estate, legal and financial industries started AvoidForeclosure.com with the hope of taking it national. The first quarter of 2012 marks the launch of national programs aimed at stopping foreclosure in any U.S. state.

The Bank’s View With a Phoenix, Arizona Short Sale

Article by Reed Lattin

There are many pieces to the Phoenix, Arizona short sale process that must be executed well when attempting to save a homeownerÂ’s credit and short sale their home. This article was written to highlight some of the more common responses from banks when negotiating an Arizona short sale. Keep in mind that every bank has its own set of rules and policies. Moreover, strategies that work with some banks will not work with other banks. In other words, there is no exact science to getting a Phoenix short sale approved, but having the right Phoenix short sale team with real life experience will help greatly.

One of the more common responses that I have heard from banks when attempting to negotiate an Arizona short sale or Phoenix short sale is that the bank “will not negotiate and take a loss”. Obviously no bank wants to take a loss on a loan. Often times the bank will state that their written policy is not to negotiate with delinquent payments and or to agree with an Arizona short sale. They will usually say that if the homeowner cannot continue to make payments on the home, then foreclosure is the only other option. These responses are much more common when the homeowner is not behind on payments and the Phoenix short sale agent initially contacts the bank. Banks will then assess the situation and see how dire the financial crisis is. In my opinion, if you attempt to negotiate a Phoenix short sale when your mortgage payments are current, odds are that the bank will say they won’t negotiate.

I donÂ’t blame them, in their eyes you are seen as a homeowner who can still financially afford the home. But on the other hand, I tend to see a different tone with banks when negotiating a Phoenix short sale when the homeowner is 3 months behind. The banks seem to realize that the financial crisis with the homeowner is legitimate and that there is no other option. Although being behind on payments can help with a Phoenix short sale, there are still banks who wonÂ’t negotiate at this point. But, within the last 6 months, I have noticed that more and more banks have become easier to deal with. In fact, many banks have done a noble job in reacting to the nation-wide financial crisis by adding more support staff for short sales in Phoenix, Arizona.

Yet, there always seems to be a few banks that claim they still won’t approve a Phoenix short sale or take a loss regardless of the payment history. But, these same banks have instantly changed their policy in front of me when the homeowner has opted for bankruptcy. I have dealt with banks that claim the decision making is “out of their hands” all the way up to the point where word “bankruptcy” is mentioned. At this juncture, almost all banks have agreed a Phoenix short sale and taking some sort of loss with their loans.

I am not advocating or recommending that a homeowner should intentionally fall behind on payments to increase the chances of getting a Phoenix short sale approved. Nor am I encouraging homeowners to file for bankruptcy in an effort to short sale their home. Before making any decisions regarding a Phoenix short sale or Arizona short sale, please contact real estate attorney.

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