Posts Tagged ‘anti-deficiency’
No Anti-Deficiency Protection for Home Improvement Loans
Question: Last March we bought a home in the “Arcadia Lite” area of Phoenix. We borrowed a high-interest $250,000 second mortgage (“Second Loan”) to “fix and flip” the home. We tore down two of the smaller bedrooms to make a large covered patio surrounding the swimming pool. We completed this construction six months ago and…
Read MoreNo Anti-Deficiency Protection Without Starting Construction of a Structure on a Vacant Lot
Last week the Court of Appeals in the Wildwood decision, 1 CA – CV 12-0728, ruled that the borrower was liable for a deficiency after foreclosure on a vacant lot. The Court of Appeals rejected the borrower’s argument that the intent to build a home on the vacant lot would qualify the borrower for anti-deficiency protection. …
Read MoreStrategic Defaults Are Not “Illegal”
Hypothetical: Microsoft founder Bill Gates owns a rental home in Arizona which is “underwater” because the value of the home is less than the amount owed on the mortgage used to buy the home. Bill Gates intentionally stops making the mortgage payments, and the mortgage lender forecloses. Issues: Does Bill Gates have any personal liability…
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