Upcoming Foreclosures

Need help with Arizona law refinancing and or foreclosure?

If I were to refinance my home for it's current market value, take my equity then had to foreclose on it in the future, other than a hit to my credit what can happen to me?

Public Comments

1. I see where you are going. Lets say you owe 150,000 and you can refi and pull out 50,000 as your propert is worth 200K Let the property foreclose, you get your 50K and walk away. In theory not bad. This is what will happen, when it forecloses. The bank will set the price at 135K. Since most foreclosures are bought back by the bank. You now owe the bank 65K plus attorneys fees. Its called a deficiency judgement. They wont sell the house at foreclosure for 200K they will sell it for 135-150k. You owe the bank the difference. They will garnish your wages or get back their money anyway they can. Hopes this helps.
2. Depends if Arizona has a non deficiency law. If it does they can not come after you for the difference in what you owe and what they sell it for. Check with a real estate attorney.
3. Arizona is a "NON DEFICIENCY" state. What does that mean? The bank will NOT come after you for the difference on 1. What you owe. 2. What the bank sold the home for in foreclosure. The bank will in fact issue a 1099-S that you may have to pay taxes on. Debt foregiven by a bank is considered income to the I.R.S. Why? Only heaven knows. Write your congressman and ask them to repeal this law. Hope this helps. Terry S. http://www.Welcome2Arizona.com