If I have a HELOC and my house is forclosed upon, what is my responsibility in a non-deficiency state?
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If I have a HELOC and my house is forclosed upon, what is my responsibility in a non-deficiency state?
and will i need to file bankruptcy
Asked on July 2, 2012 under Real Estate Law, Arizona
Answers:
Anne Brady / Law Office of Anne Brady
Answered 11 years ago | Contributor
You are correct that Arizona protects homeowners through a pair of "anti-deficiiency statutes." These laws protect homeowners who lose their homes through foreclosure from having to pay the deficiency between the amount owed and the amount realized from the sale of the property. However, the relevant statute, ARS 33-729(A) only applies to "purchase money mortgages," that is mortgages taken out to fund the original purchase of the home.
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