{"id":2723,"date":"2008-03-08T01:49:04","date_gmt":"2008-03-08T08:49:04","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2723"},"modified":"2008-03-08T01:49:04","modified_gmt":"2008-03-08T08:49:04","slug":"a-deficiency-judgement-in-arizona-not-likely","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2723\/a-deficiency-judgement-in-arizona-not-likely\/","title":{"rendered":"A Deficiency Judgement? In Arizona? Not Likely."},"content":{"rendered":"

Hello again!<\/p>\n

Have\u00a0clients asking\u00a0you about short sales? I know I certainly do! In fact, it’s become a big part of my business. In fact, I am conducting short sale negotiations for 3 different REALTORS, as well as 5 different clients. Unfortunately, a lot of questions have arisen lately about Arizona’s Deficiency Statutes regarding foreclosure. I say “unfortunately” because I feel somewhat less than qualified to definitively answer these questions. Greater legal minds than mine (and mine is decidedly NOT legal) will be required to put the issue to rest. I will, in spite of the danger of blatantly misrepresenting the facts, case law, and statutes, attempt to answer one (NON-) simple question:<\/p>\n

“If I do a short sale, or my property is taken from me by foreclosure, can the bank ‘come after me’ for the difference between what the property eventually sells for, and what I owe them, including sale costs, legal fees, etc?”<\/em><\/p>\n

First, let me point the reader in the general direction of actual legal minds on this issue. Here is a rather esoteric treatise on the subject of getting sued for a deficiency judgement<\/a>. Very good read, and fairly definitive on the issue.<\/p>\n

Here is another article<\/a>, that is more user-friendly on the same subject. Now, because I have a public education, and am somewhat literate, I will attempt to provide a synopsis of the above:<\/p>\n

In Arizona, there are two types of “notes” given for real property: a “Deed of Trust” or a “Mortgage”. Despite the common parlance of the term “mortgage,” most people in most states do not actually have Mortgages. They have Deeds of Trust. I won’t go into the differences here, but suffice to say that a Deed of Trust has three parties to the agreement, and an actual Mortgage has only two. Actual mortgages are very uncommon in most states.<\/p>\n

Now, the remedy of a lender for a home in default depends on what type of note was used to secure the property. If there is a true mortgage in place, the lender must sue in civil court in a process known as “judicial foreclosure.” The particulars of a Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Hello again! Have\u00a0clients asking\u00a0you about short sales? I know I certainly do! In fact, it’s become a big part of my business. In fact, I am conducting short sale negotiations for 3 different REALTORS, as well as 5 different clients. Unfortunately, a lot of questions have arisen lately about Arizona’s Deficiency Statutes regarding foreclosure. I […]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,5],"tags":[81,79,80,78],"class_list":{"0":"post-2723","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-ask-the-broker","7":"category-real-estate","8":"tag-arizona-foreclosure-statutes","9":"tag-foreclosure","10":"tag-foreclosure-law","11":"tag-short-sales","13":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3060,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3060\/arizona-short-sales-who-are-you-working-for\/","url_meta":{"origin":2723,"position":0},"title":"Arizona Short Sales: Who Are You Working For?","author":"Allen Butler","date":"May 5, 2008","format":false,"excerpt":"I, like some of you, have just received the AAR's May newsletter, in which Christopher A. Combs, AAR's\u00a0\"legal hotline\" counsel, provides a legal treatise on a contractual issue regarding short sales in Arizona.\u00a0 I direct your attention to Exhibit A\u00a0(page 11, dab-smack in the middle of the page).\u00a0 In this\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3234,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3234\/short-sale-trouble-how-to-avoid-it\/","url_meta":{"origin":2723,"position":1},"title":"Short Sale Trouble: How To Avoid It!","author":"Allen Butler","date":"June 14, 2008","format":false,"excerpt":"So, As the short sales go rumbling along in our various real estate markets, a question has arisen, and the answers are varied and contradictory. The question is: how do I, as the listing agent, handle a multiple offer situation on a short sale? Make no mistake, however you decide\u2026","rel":"","context":"In "Egoism in Action"","block_context":{"text":"Egoism in Action","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/egoism-in-action\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5199,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5199\/foreclosure-homes-are-sold-as-is-but-most-need-only-minor-restoration-to-bring-them-back-to-fully-livable-condition\/","url_meta":{"origin":2723,"position":2},"title":"Foreclosure homes are sold “as-is” — but most need only minor restoration to bring them back to fully-livable condition","author":"Greg Swann","date":"October 25, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Foreclosure homes are sold \"as-is\" -- but most need only minor restoration to bring them back to fully-livable condition If we were to have a contest for the Valley's most-gutted home, judging might take a while. A\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5965,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5965\/seriously-whos-a-better-risk-for-a-mortgage-than-someone-who-has-already-lost-a-home-to-foreclosure\/","url_meta":{"origin":2723,"position":3},"title":"Seriously,\u00a0who’s a better risk for a mortgage than someone who has already lost a home to foreclosure?","author":"Greg Swann","date":"December 6, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Seriously, who's a better risk for a mortgage than someone who has already lost a home to foreclosure? We talked last week about credit flexibility among merchants as they try to find ways around the banking crunch.\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":100,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/100\/the-sky-is-always-falling-except-when-it-isnt\/","url_meta":{"origin":2723,"position":4},"title":"The sky is always falling — except when it isn’t…","author":"Greg Swann","date":"July 18, 2006","format":false,"excerpt":"Foreclosures are up in Arizona for the first six months of 2006, as compared with the last six months of 2005. The will be cause for sustained gloating at the Arizona Republic, so here is the real news, from the Business Journal of Phoenix, before it goes through the Spin\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1578,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1578\/buying-foreclosure-properties-dont-be-the-early-worm\/","url_meta":{"origin":2723,"position":5},"title":"Buying Foreclosure Properties? Don’t Be the Early Worm…","author":"Cooksquared","date":"June 25, 2007","format":false,"excerpt":"The old adage \"the early bird gets the worm\" points to the advantage of being first to market. But, has anyone ever thought about the early worm, clearly he was not so lucky. Many of the people who are jumping into the foreclosure market now may be the early worms.\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2723","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2723"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2723\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}