Real estate Q&A: How to deal with the foreclosure of the house by the bank

Real estate Q&A: How to deal with the foreclosure of the house by the bank (Alberta Times) Question: My house is about to be foreclosed by the bank? I later took out 50,000 for the second loan...

(Alberta Times)

Question: My house is about to be taken over by the bank for foreclosure. Am I still responsible for the portion of the $50,000 I took out for the second loan to start my business? If the first bank sells the insufficient portion, am I still responsible? In addition, a friend told me that I can use the bank’s inability to submit my original loan document (promissory note) as a protest to prevent the bank from successfully collecting my house. Is this true? Answer: Arizona has an Anti-deficiency statute. This means that if the first bank is afraid of not being able to compensate you enough after selling your house, it can no longer trace your shortfall to you, but your second bank's part cannot be protected, and you are still responsible. Regarding your "Show me the Note" appeal, at least two Arizona courts have found that it is not valid, and the bank can still repossess your house.