My question involves a foreclosure in the State of: AZ
I have a single family home in AZ. I purchased the home with a 80/20 five years ago. We are in the process of a possible short sale, the offer will not cover the full amount of either loan . The second loan is held by a TX mortgage company. Without a judgement the second mortgage has started removing money from our bank accounts. I have read the mortgage, and it states that they will do this based on TX real estate law, but my question is if the short sale goes through what state law (AZ or TX) will be followed regarding what is owed on the second?
I have read that in AZ lenders are prohibited from obtaining deficiency judgments on single family homes less then 2.5 acres, which ours is. Is this true for a short sale?
Thanks for any help.