Chapter 13 bankruptcy is a legal process that allows individuals with regular income to reorganize their debts and create a repayment plan. Unlike Chapter 7, Chapter 13 focuses on debt repayment over three to five years. Chapter 13 bankruptcy allows you to use such a payment plan to pay off mortgage arrearages. Essentially, Chapter 13 stops foreclosures.
An Arizona bankruptcy lawyer or an Arizona real estate lawyer will advise that a lender cannot be compelled to foreclose and take title to property. As such, these delayed foreclosures are causing uncertainty and potential liability to the debtor.
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.
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.