In the aftermath of the housing bubble bursting, many hard working Americans were left with mortgages that were a lot larger than the current value of their homes. At the same time, many of these same people were suddenly unable to make their mortgage payments, whether because they were laid off, their adjustable rate adjusted up – or both.
Whatever the reasons, an unprecedented number of homeowners have opted to simply walk away from their homes in recent years. In the past, this meant that the bank would foreclose on the home, the former homeowner would walk away with a black mark on his or her credit score and the matter was closed. The bank would then have to write off any loss it suffered when reselling the home at a much lower price.
Fannie Mae – one of the largest home lenders in the nation – is fed up with the number of people walking away from their mortgage responsibilities. Instead of simply foreclosing and taking the write-off, Fannie Mae will now investigate as to whether the foreclosure was warranted or not. That means that if a homeowner who is perfectly capable of paying the monthly mortgage payments walks away from a home – whether because they owe far more on it than it is worth or any other reason – Fannie Mae will pursue them legally to pay back the difference between what was owed on the mortgage and what Fannie Mae can get when it resells the house.
Not all states allow these “deficiency judgments,” but Arizona does. In Arizona, lenders can only pursue a deficiency judgment if the land is 2.5 acres or less and the property was used as either a single one-family or single two-family dwelling.
At The Zolman Law, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.
We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.