During the economic boom that preceded the recent fall, many homeowners across the country and Arizona have taken out a second mortgage loan in their home. Since many homeowners are now facing foreclosures, they should ensure that they understand the consequences of Arizona's unique foreclosure laws - especially for lenders' right to seek defective jurisdiction.
In many countries, a mortgage lender can file a lawsuit with the borrower after the mortgage to recover the difference between the mortgage loan arrears and the amount the lender has received in the foreclosure auction. This situation still exists in Arizona, but many homeowners are protected by Arizona's unique anti-defect laws. These laws apply to the exclusion of such behavior as long as the real estate implies a single-family home of 2.5 acres or less, and the lender raises the custody sale, and/or if the loan is used to purchase the property. To ensure that you are likely to be bound by these regulations, you should discuss your situation with an experienced Arizona real estate lawyer.
Since anti-defect regulations apply to all bad behavior of a preferred mortgage institution, a second mortgage institution may not use all or part of the funds to purchase a family. In these circumstances, the lender may have the right to file a separate lawsuit to recover the pledged funds required by the terms and conditions of the promissory note.
Another unique situation occurs when the borrower stops paying the second mortgage but is not the first loan. In today's real estate market, second mortgage lenders often have little incentive to demand mortgages because the property may not have equity - this means that once the first mortgage is paid, the second mortgage institution has nothing left Now. This effectively made Arizona's many second mortgage loans unsecured, at least for the moment.
The fortifications of many homeowners in Arizona reported that Arizona's anti-defect law ruled out actions that other places may allow. In addition, the lack of security of real estate and the difficulty of collecting possible rulings will often encourage second mortgage lenders to renegotiate the terms of the borrower's loan favorably.
If you are in doubt about a mortgage loan, anti-defect law or any other related matter, you should discuss it with an experienced real estate lawyer as soon as possible.
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Orignal From: Arizona's Second Mortgage and Foreclosure - What You Need to Know
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