My question involves a foreclosure in the State of: AZ
I've seen posts here regarding "recourse" and "non-recourse" mortgages and would like some input on my specific situation.
In 2005 we took out a purchase money mortgage for our house (80%, we put down 20%).
In 2006 we took out a loan (Citifinancial) for a car.
In 2010 the first was foreclosed on and the house was auctioned. The Lender for the first provided paperwork that they had released all interest in our mortgage and would not pursue it.
Here's where I'm a bit confused. The paperwork for the 2nd doesn't say specifically what type of loan it is (HELOC, or ???), but includes the provision that we were giving the Lender a "security interest in Real Property", and includes a Deed of Trust.
It also includes a "Request for Notice of Default and Foreclosure Under Superior Mortgages or Deeds of Trust".
I am now receiving requests for payment from both the 2nd Lender (Citifinancial) and the third-party collection agency they use.
So my question is -
Given that the 2nd was secured by the house (and inc a Deed of Trust), and that the property was foreclosed on, am I still liable for the balance?
Thanks in advance