Any competent Arizona real estate lawyer, Arizona foreclosure lawyer or Arizona bankruptcy lawyer will agree that the Arizona anti-deficiency statute is one of the most important Arizona laws protecting borrowers with loans secured by a residence. This statute will prevent many mortgage lenders from suing debtors for any deficiency amount after a foreclosure occurs. In a surprise ruling, a recent Arizona Court of Appeals case has extended the Arizona anti-deficiency statute to construction loans.

When you stop making mortgage payments, an experienced Arizona foreclosure lawyer or Arizona real estate lawyer will advise that you will still be able to live in your house for at least 90 days after a foreclosure notice is filed and delivered to you. And depending on how aggressive the lender is, a foreclosure notice may not be filed for quite some time after you stop making payments.

A common question I get is how long must a person wait after a foreclosure, short sale or bankruptcy before that person will qualify for another home loan. Although an Arizona real estate lawyer or Arizona bankruptcy lawyer is not a “credit expert”, Fannie Mae has established a number of different waiting periods for so called “derogatory credit events”.

There are many myths about the benefits of short sales. The downside of short sales may be much more than the upside because the legal ramifications and adverse consequences could be more severe than opting for a foreclosure. Always consult with an experienced Arizona real estate lawyer, an Arizona foreclosure lawyer or an Arizona bankruptcy lawyer before considering a short sale.

The Arizona anti-deficiency statute is powerful protection for homebuyers with mortgage loans. But it may not apply in all situations. Consult with a competent Arizona real estate lawyer and Arizona bankruptcy lawyer to determine whether the anti-deficiency statute will protect you from being sued after a foreclosure.