Home Selling in Marana>Question Details

Tony Lawrence, Home Seller in Los Angeles, CA

Can a deficiency judgement passed in Arizona be applicable for collection on assets owned in California?

Asked by Tony Lawrence, Los Angeles, CA Mon Dec 29, 2008

My primary residence is in CA and i have equity here. My second home is in AZ. The AZ home value is less than the loan amount. I have a 80%/20% (first and second) loan with the same lender. Interest rate and payments are high and not sustainable. In the case of a short sale (preferred) or foreclosure, can the AZ lender come after my CA home and other assests? AZ home is on 5 acres of land. Will lender (Aurora) be willing to negotiate a settlement of the difference owed? What is the probability of lender pursuing a judicial versus non-judicial foreclosure based on historical precedence?

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Hi Tony,

I'm not a lawyer or accountant, but here is my two cents. The answer to your question is basically dependent on what your mortgage paperwork says. It is a recourse or non recourse loan? If it is the first, then yes, they can come after other personal assets. If it is the latter, then they cannot.


In Arizona non-recourse loans are the standard. I'm assuming since your property is in Marana (my backyard), your loan was originated here. If not, check your state's standard, and then your loan paperwork.

Secondly, your question regarding Aurora being willing to 'settle' on the difference owed. Answer: Maybe. Give them a call and see what you can work out. I've had several clients who were considering short sales who were able to work a deal with the bank and not have their credit affected.

1 vote Thank Flag Link Mon Dec 29, 2008
I would suggest talking with Michael Monroe. He is a Real Estate Attorney. 520-886-3527

Chris Szabo
Tierra Antigua Realty
0 votes Thank Flag Link Sat Apr 10, 2010

Your question is of a highly legal nature and should be presented to a real estate attorney.

0 votes Thank Flag Link Mon Dec 29, 2008
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