If you are a lender whose borrower is in default, our lawyers can assist you in the collection and foreclosure process. Contact us today if you have questions about your rights as a lender in Arizona or would like to hire one of our attorneys to assist you with a foreclosure.
If you are a borrower who is unable to pay your mortgage and facing foreclosure, you should consult with or hire an attorney. There are significant legal and tax consequences in a foreclosure. The most common question we hear as Arizona real estate attorneys is whether the bank can take your house and then sue you to collect the deficiency (i.e., the difference between the amount of the mortgage and the amount obtained at the foreclosure sale). The answer to this question depends upon the particular facts and circumstances of your loan and your property. Arizona law sometimes permits the bank to sue for a deficiency judgment.
There are also significant tax consequences relating to foreclosure. A foreclosure generally creates income to the borrower in the amount of the forgiven debt. Although Congress passed the Mortgage Forgiveness Debt Relief Act of 2007, which generally excludes income realized as a result of a foreclosure on a principal residence, the Act may or may not apply to your foreclosure depending upon your particular circumstances. To determine your risk for a deficiency judgment and understand all of the legal consequences of foreclosure, call us to meet with an Arizona real estate attorney today.
We also represent individuals who are victims of predatory lending schemes and mortgage fraud. The real estate boom that we experienced in 2004 through 2006 had a less savory side that is only now coming to light: Certain individuals and companies preyed on less-sophisticated consumers, selling them loans that they never could afford, misrepresenting the terms and conditions of the loan, and/or even falsifying documents and records! Whether you are a lender looking to collect or foreclose on a deed of trust or a borrower with questions regarding the foreclosure process or who believes you are the victim of predatory lending or mortgage fraud, we highly recommend you consult with an attorney immediately.