Foreclosure in Surprise>Question Details

Marmar, Home Owner in Surprise, AZ

I have a home I cant rent for the loan amount. I refied the loan 5yrs ago. Can the bank come after me for the equity amount I took out if I walk away?

Asked by Marmar, Surprise, AZ Tue Apr 26, 2011

I have 3 houses. I have already walked from one. I want to walk from another one. I have asked the bank to work with me on the second one, they will not. They increased my loan amount on the house in question when I give the first house back (same bank holds both loans). I can't rent this house for the loan amount and can't make up the difference. I have moved into the 1 remaining house that I purchased at a good price.

Help the community by answering this question:

Answers

11
You might be liable, speak to an attorney.
1 vote Thank Flag Link Fri Apr 29, 2011
Please consult with a real estate attorney and CPA about your situation. You may have some legal and tax consequences depending on your course of action.

Here is a good document to reference regarding selling your home via short sale:

http://www.re.state.az.us/PublicInfo/Documents/Short_Sale_Se…

Best of luck!

MARS Disclosure for General Commercial Communications:

IMPORTANT NOTICE: James Wehner or John Hall and Associates is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Sat Apr 30, 2011
Don't walk away. Get legal advice from a Real Estate Attorney.
0 votes Thank Flag Link Wed Apr 27, 2011
There is no way to know without the specifics of the situation. If you refinanced the house and took equity out but reinvested it in the house, you may be okay under Arizona's Anti-deficiency statues. On a Short Sale the bank may agree to the Short Sale if you sign a promisory note for at least part of the equity you took out. There is simply no way for anyone in this forum to give you a definitive yes or no answer. It depends on your Bank, the way your note is written, and your individual situation. It is something you need to work out between yourself and your Bank. As for the Attoney you consulted, he gave you a very typical answer, it depends! There are no cut and dried guidelines in your situation.

Could you rent it for part of your monthly payment and still make the payments? That might be an alternative plan to walking away from the property which will mess you up on buying again for a very long time. Think it though carefully before you make that decision. Upside down equity will correct itself in time, if you can hold on that is what you should do.
0 votes Thank Flag Link Wed Apr 27, 2011
You can do a short sale and keep foreclosure off your credit. We will negotiate with the bank and try to get you off the hook for the deficiency. We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Wed Apr 27, 2011
Dear Marmar:

Generally Arizona is a non deficiency state in a normal purchase money loan situation. Sound like you have a more complex issue with multiple homes. I would recommend talking to Real Estate attorney and review your individual loan documents and obtain personal advice.

Offering generic advice in a complex situation in a public forum would do you a dis-service.

In the meantime see this link about short sales in Arizona and the link within for the State of Arizona's Short Sale Advisory which will answer many questions and provide you with alternatives: http://arizonahomesland.com/arizonashortsales.html

May I wish you the best.

Jeff Masich, Realtor
Arizona Homes and Land
HomeSmart Realty
Web Reference: http://ArizonaHomesLand.com
0 votes Thank Flag Link Tue Apr 26, 2011
You asked "with what you know would you walk away?" Well, I don't know much about your situation, so the answer is NO. There's a good chance you'll make things worse than they need to be.
I don't know if you talked to some lawyer or a real estate attorney. I'm not sure what you asked the bank. I DO know that banks don't want to foreclose on people when there are better options.
0 votes Thank Flag Link Tue Apr 26, 2011
@ Mark - are you a real estate agent or broker??

@ Marmar - if you truly consulted with an attorney and didn't receive all the answrs to your legal questions, then you REALLY need to do some soul searching. If you're just waiting for someone on this forum to give you permission to "walk away" from your mortgage loan, then you shoud probably seek some psychological counseling.

There are no easy or simple answers when it comes to real estate decisions. Be aware. Be wise.
0 votes Thank Flag Link Tue Apr 26, 2011
I have consulted with a lawer and he didn't really tell me yes or no.
So let me say it this way. With what you know would you walk away from a situation like this. The bank will not work with me.
0 votes Thank Flag Link Tue Apr 26, 2011
We really need to work with the bank. There's alot of questions here, but I get it. It's typically better for everyone to cooperate. Go ahead and send me an e-mail if you'd like to go over the options, it won't cost you anything.
0 votes Thank Flag Link Tue Apr 26, 2011
This is a question you need to consult with an attorney.

Try watching video #2 on this page to learn about Arizona's Anti-Deficiency Law

http://www.smartshortsaleaz.com

http://www.DonaldKeys.com


HomeSmart brokers and agents do not give legal,
financial or tax advise. Please consult these professionals
before, during and after buying or selling any property.

IMPORTANT NOTICE:
You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay HomeSmart the commission as stated and agreed to on the listing agreement, for our services.

HomeSmart is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
0 votes Thank Flag Link Tue Apr 26, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer