Foreclosure

Have you received a notice of foreclosure? It may also have been labeled as a notice of trustee sale. You have rights up until the date that your house is sold, and an attorney can help you stop foreclosure if you qualify to file for bankruptcy. Many people who have received a notice of trustee sale have never faced the threat of foreclosure. At the Law Offices of Fife & Cesta, PLC, we can help you understand your rights and options moving forward.

If you are more than two months behind in mortgage payments for your house or you have received a deficiency notice, you could soon receive a foreclosure notice. You’ll want to talk promptly with a lawyer who can help you protect your assets and take appropriate action, because there are important timelines involved in foreclosure.

Just because you have received a notice of trustee sale does not mean it is too late to save your home. By filing for bankruptcy, you can save your house and eliminate many of your debts. Some people, however, are ready to leave their house but want to minimize liability. We can help you find a plan that works for you and your family by protecting your rights in foreclosure litigation. We will educate you on your options, such as the short sale process, in order to make sure you make the decision that is right for you. Although a real estate agent may handle the closing in your short sale, it is important to understand your legal rights and obligations.

Anti-Deficiency Statute

Many people have heard that in Arizona an anti-deficiency statute gives them the right simply to walk away from their house. While this is true in some cases, there are limitations and qualifications to this option that can be complicated to understand.

A “deficiency” is a legal term that means the difference between the total amount owed to the lender (principal + interest + foreclosure expenses + other amounts due under the loan documents) and the amount realized by the lender at a foreclosure sale. For example, if the total amount owed is $100,000 and the foreclosure sale produces $80,000, there is a deficiency of $20,000.

The answer to the question can my lender sue me for a deficiency is yes or no, depending on the facts and circumstances of each loan. Sometimes Arizona law prevents the lender from suing the borrower for the deficiency following a foreclosure. Sometimes it does not.

If you are facing a possible loan default and foreclosure or if you have already defaulted and a foreclosure has started, you should consult with an experienced Arizona real estate attorney who can review your specific situation and tell you if you will be liable for a deficiency or if Arizona’s anti-deficiency laws protect you from being sued for a deficiency. You should consult with an experienced real estate attorney sooner, rather than later, because your options will be reduced and then eliminated the closer you get to the foreclosure date.