Scottsdale & Phoenix, Arizona: Strategic Default, Foreclosure Assistance Attorneys
When other options have failed or are not attractive to a borrower, a strategic default may be a viable option in an otherwise difficult situation. Some buyer’s simply cannot afford to pay their mortgage as a result of a job loss, health issue, or other economic hardship. Other borrowers are faced with a job relocation or need to sell their property, but because it is underwater, can’t do so without their lender’s assistance. Other borrowers simply recognize that the value of their home compared to the debt owed to their lender is so low that continuing to pay their mortgage no longer makes financial sense.
Borrowers thinking about stopping payments on their mortgage or allowing a home or property to go into foreclosure (a “strategic default”) must understand Arizona’s anti-deficiency laws and whether or not they will face liability to their lender for the balance of their loan if their home or property is foreclosed. In some cases (but not all), Arizona’s anti-deficiency statutes will protect a borrower or guarantor under a loan from additional liability after a foreclosure.
In deciding if strategic default or foreclosure is an option, a borrower or guarantor must understand:
- Whether Arizona law will protect them from additional liability to their lender after a foreclosure.
- What obligations they have to satisfy prior to a foreclosure.
- Their obligations to pay HOA fees, real property taxes and insurance.
- How long the foreclosure process takes and what to expect leading up to and after a foreclosure sale.
- The impact to a borrower’s credit and ability to obtain other loans.
- Their rights and obligations related to occupying the property after a foreclosure.
- Potential tax implications from a foreclosure.
A strategic default is a major decision for any borrower and should not be made without first understanding all implications. Marc McCain can review your loans and your specific situation and advise you regarding your rights and obligations and what to expect in the foreclosure process. Don’t go through this process alone – having experienced foreclosure attorneys at your side will ensure that you are making a wise decision and help ease the stress and uncertainty that accompanies a foreclosure.
Please Contact Us today or call us at 602-604-2138 to understand how McCain & Bursh, PLC may be able to assist you in deciding if a strategic default is an option for you. – Consultation Disclaimer*