One of the most frequent questions we receive regarding the effects of foreclosure is whether your second mortgage lender can sue you to recover damages for the amount they were unable to recover from the foreclosure, if they recovered anything at all, after the first mortgage lender has foreclosed on your home.
This question cannot be answered without a complete analysis of your situation. Among other things, in order to provide a legal opinion of your potential liability, an Arizona real estate lawyer must determine what type of home you live in, how the lender proceeded to foreclosure, when you obtained the loan in question, how the funds were utilized, and what actions the second mortgage lender may have already taken with regard to your loan. Many individuals have heard, and they are correct, that in certain circumstances in Arizona a second mortgage lender cannot sue you for a deficiency. This is not always the case, however, and before making any decisions based on this assumption you should consult with an experienced Arizona real estate attorney to discuss the facts and circumstances of your case.