Originally Published: March 24, 2009 11:14 p.m.
Chad Cornell's March 22 Talk of the Town, "Foreclosures have domino effect" said one of the big problems with foreclosures is that "we all become victims of the banks' unregulated problem-solving technique" when after the foreclosure and subsequent resale of the home (at a loss) "the next thing that the bank does is sue the previous owner of the house to recoup the loss the bank created."
I would challenge Mr. Cornell to give us an example of this occurrence, because Arizona's anti-deficiency statutes A.R.S. 33-729 and 33-814 prohibit a lender from obtaining a deficiency judgment against a borrower after a trustee's sale or foreclosure of residential property.
At a time when many people are experiencing the heartbreak of foreclosure, the last thing they need is more fear caused by reading articles that are lacking in fact. Please, Mr. Cornell, before you scare people with your claims about "the next thing the bank does" get the facts, and read the laws.
The Legislature enacted these statutes to protect homeowners from the financial disaster of losing their homes to foreclosure plus all their nonexempt property on an execution of a judgment for the balance of the purchase price. In the State of Arizona, losing your home is enough. The buck stops there.
Associate Real Estate Broker
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